Figure 3 Price per unit S+tax S, o+tax So Tax Demand 0 ap Qc Quantity Figure 3 s
ID: 1119827 • Letter: F
Question
Figure 3 Price per unit S+tax S, o+tax So Tax Demand 0 ap Qc Quantity Figure 3 shows a demand curve and two sets of supply curves, one set more elastic than the other it sold, the consumer's burden of the tax A) is greater under the mora elastic supply curve So B) is greater under the less elastic supply curve So C) is greater under the less elastic supply curve S1 D) is the same under either supply curve because there is a single demand curve that captures buyers' marke behavior 39) Refer to Figure 3. If the government imposes an excise tax of $1.00 on every unit sold, the producer's burden of the tax A) is greater under the more elastic supply curve So B) is greater under the less elastic supply curve So- C) is greater under the less elastic supply curve S1. D) is the same under either supply curve because there is a single demand curve that captures buyers' ma behavior 40) Refer to Figure 3. If the government imposes an excise tax of $1.00 on every unit sold, the government's revenue from the tax A) is larger if the supply curve is So- C) is identical under either supply curve. B) is larger if the supply curve is S1 D) is not maximized. 41) Suppose an excise tax of $1 is imposed on every case of beer sold and sellers are responsible for paying t would the imposition of the táx be illustrated in a graph? A) The supply curve for cases of beer would shift to the left by $1. B) The supply curve for cases of beer would shift to the left by less than $1. C) The supply curve for cases of beer would shift to the left by more than $1 D) The supply curve for cases of beer would shift to the right by $1.Explanation / Answer
38) The correct answer is "A". The burden of the tax is more on the consumer under the elastic supply curve. Because the price has increased to Pa after-tax as compared to inelastic supply curve where the price is only Pb.
39) The correct answer is "C". The burden of the tax is more on the producer under less elastic supply curve.
40) The government revenue from taxation is more under the elastic supply curve. the correct answer is "A". Because in this case, the price has increased more than the quantity decrease. The government taxation will be the area under "cfa" compared to the area under "cbf".
41) the correct answer is "D" the supply curve will shift to the right as less amount is supplied at the given price and the tax is added.
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