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Statistics for Business and Economics13th EditionDavid R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams 1,691 solutions When an excise tax is imposed on buyers this will cause the?If excise tax is imposed on consumers, the consumer's demand for Good A will decrease. It is illustrated as the demand curve shifts from position D0 to D1. Quantity shifts from Q0 to Q1 after the excise tax has been imposed on consumers of each unit of Good A.
When a tax is imposed on a good for which the supply is relatively elastic?When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic, Buyers of the good will bear most of the burden of the tax. More, and sellers receive less than they did before the tax.
Which of the following goods has the lowest price elasticity of demand?The Bottom Line
Goods that are considered essential have a low elasticity of demand. Electricity, gas, oil, and water are all relatively inelastic because consumers rely on these as necessities rather than luxuries.
Which of the following would result in a smaller deadweight loss from a given tax?Answer and Explanation: A tax that is paid regardless of what you do/buy would have the smallest deadweight loss relative to tax revenue.
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If an excise tax is imposed on a good for which the demand is perfectly inelastic Quizlet
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