Solved

-The Demand for Apple Pies Is Perfectly Elastic

Question 33

Multiple Choice

-The demand for apple pies is perfectly elastic. If the government taxes pies at $1 a pie, then A) the seller and the buyer split the tax but the seller pays more. B) the seller and the buyer split the tax evenly. C) the seller pays the entire tax. D) the buyer pays the entire tax. E) who pays the tax depends on whether the government imposes the tax on pie buyers or on pie sellers.
-The demand for apple pies is perfectly elastic. If the government taxes pies at $1 a pie, then


A) the seller and the buyer split the tax but the seller pays more.
B) the seller and the buyer split the tax evenly.
C) the seller pays the entire tax.
D) the buyer pays the entire tax.
E) who pays the tax depends on whether the government imposes the tax on pie buyers or on pie sellers.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q28: If neither the demand nor supply of

Q29: The size of the deadweight loss, or

Q31: The loss to society resulting from a

Q32: -If a $1</p></div><svg width=

Q34: The supply of sand is perfectly inelastic

Q35: For a given elasticity of demand, the

Q36: A $2.00 increase in the size of

Q37: Suppose the elasticity of demand for takeaway

Q38: If the government eliminates a tax on

Q77: -The above figure</p></div><svg width=

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents