About how much of the tax is paid by consumers in the form of higher prices? 10
ID: 1250590 • Letter: A
Question
About how much of the tax is paid by consumers in the form of higher prices?
10 cents
20 cents
35 cents
50 cents
65 cents
About how much of the tax is paid by the sellers?
80 cents
65 cents
50 cents
35 cents
10 cents
As a result of the tax, the consumption of this good falls by about __________.
4
5
6
7
8
The imposition of a tax __________.
raises both supply and demand
lowers neither supply nor demand
lowers only supply
lowers only demand
Supply is most elastic in __________.
the market period
the short run
the long run
Which is the most accurate statement?
The demand for gasoline is very elastic.
The demand for home heating oil is very inelastic.
The seller of a perishable commodity has a relatively elastic supply.
Most firms can double their output in the short run.
Explanation / Answer
1. "3. 35 cents" 2. "2. 65 cents" 3. "2. 5" 4. "3. lowers only supply" 5. "3. the long run" 6. "2. The demand for home heating oil is very inelastic."
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