An analysis of the effect of excise taxes on markets allows us to conclude that:
A) when the price elasticity of supply is equal to zero,an excise tax falls entirely on the consumers.
B) when the price elasticity of demand is lower than the price elasticity of supply,an excise tax falls mainly on the producers.
C) whether the tax is levied on consumers or producers,the quantity sold will be the same.
D) when the price elasticity of demand is higher than the price elasticity of supply,an excise tax falls mainly on the consumers.
Correct Answer:
Verified
Q73: If demand is downward-sloping and supply is
Q74: The deadweight loss from an excise tax
Q75: Given any upward-sloping supply curve for a
Q76: If the government wants to minimize the
Q77: If you want to reduce the inefficiency
Q79: If the main purpose of a tax
Q80: Given any downward-sloping demand curve for a
Q81: Use the following to answer question:
Q82: Use the following to answer question:
Q83: Use the following to answer question:
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents