Assume the demand for cigarettes is relatively inelastic,and the supply of cigarettes is relatively elastic.When cigarettes are taxed,we would expect
A) most of the burden of the tax to fall on sellers of cigarettes,regardless of whether buyers or sellers of cigarettes are required to pay the tax to the government.
B) most of the burden of the tax to fall on buyers of cigarettes,regardless of whether buyers or sellers of cigarettes are required to pay the tax to the government.
C) the distribution of the tax burden between buyers and sellers of cigarettes to depend on whether buyers or sellers of cigarettes are required to pay the tax to the government.
D) a large percentage of smokers to quit smoking in response to the tax.
Correct Answer:
Verified
Q179: Suppose that a tax is placed on
Q180: Suppose that the demand for light bulbs
Q181: The demand for salt is inelastic,and the
Q182: Figure 6-33
The diagram shows the effect of
Q183: Figure 6-29
Suppose the government imposes a $2
Q185: Figure 6-29
Suppose the government imposes a $2
Q186: Figure 6-29
Suppose the government imposes a $2
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