How does the elasticity of demand influence the incidence of a tax, the tax revenue, and the deadweight loss?
What will be an ideal response?
The more elastic the demand for a given supply, the smaller the increase in the price paid by the buyers and the greater the decrease in the price received by the sellers, which means that the incidence on buyers is smaller. Additionally, the more elastic the demand, the smaller the quantity bought so the smaller the tax revenue; and the larger the deadweight loss.
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A. $343 B. $44,600 C. $57,980 D. $34,308
Which of the following is an example of a resource?
a. a river b. a tractor c. the chef at a restaurant d. all of the above are resources
What is the term for taxes that governments place on imported goods for a variety of reasons?
a. barriers b. tariffs c. goods taxes d. import taxes
An increase in wealth will usually cause an individual to ________ his supply of labor.
A. not change B. increase C. decrease D. reduce to zero