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41) You are in the business of producing and selling hamburgers, french fries, pizza, and ice cream. The mayor plans to impose a tax on one of these products. Based on the elasticities in the above table, on which of these goods would your customers least like to be taxed?

A) hamburgers

B) pizza

C) French fries

D) ice cream

42) You are in the business of producing and selling hamburgers, french fries, pizza, and ice cream. The mayor plans to impose a tax on one of these products. Based on the elasticities in the above table, on which of these goods would your customers most prefer to be taxed?

A) hamburgers

B) pizza

C) French fries

D) ice cream

43) The more elastic the demand for a good, the

A) less a sales tax lowers the price paid by buyers.

B) more a sales tax lowers the price paid by buyers.

C) less a sales tax raises the price paid by buyers.

D) more a sales tax raises the price paid by buyers.

44) The elasticity of demand for chocolate chip cookies is 0.6 and the elasticity of supply for these cookies is 1.9. If a tax is imposed on purchases of chocolate chip cookies, then the

A) consumers would pay more of the tax.

B) producers would pay more of the tax.

C) tax would be equally shared by the consumers and the producers.

D) consumers would pay the entire tax because their demand is less elastic than the producers' supply.

45) A sales tax is divided so that the

A) buyers pay the full amount if demand is perfectly elastic.

B) buyers pay the full amount if supply is perfectly inelastic.

C) sellers pay the full amount if supply is perfectly elastic.

D) sellers pay the full amount if demand is perfectly elastic.

46) A sales tax is divided so that buyers pay the full amount if

A) demand has unitary elasticity.

B) supply has unitary elasticity.

C) demand is perfectly inelastic.

D) supply is perfectly inelastic.

47) When a tax is imposed on the suppliers of a good or service, then

A) in general the producers pay all the tax.

B) in general the consumers pay all the tax.

C) the demanders pay a larger part of the tax as the demand for the product becomes less elastic.

D) the demanders pay a larger part of the tax as the demand for the product becomes more elastic.

48) The more ________, the larger is the amount of the tax on the good that the ________ pays.

A) elastic the demand for a good; buyers

B) inelastic the demand for a good; buyers

C) inelastic the supply of a good; buyers

D) elastic the supply of a good; sellers

49) Which of the following leads to the demanders paying all of a tax?

A) The supply is unit elastic.

B) The supply is perfectly inelastic.

C) The demand is perfectly elastic.

D) The demand is perfectly inelastic.

50) If salt has a ________, then ________ pay most of any tax levied on salt.

A) high elasticity of supply; sellers

B) low elasticity of demand; buyers

C) high elasticity of demand; buyers

D) low elasticity of supply; buyers

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