Suppose that the federal government levies a 50 cent excise tax on gasoline and that the demand for gasoline is highly inelastic while the supply is highly elastic. Under these circumstances, the burden of the tax
a. will fall primarily on producers.
b. will fall primarily on consumers.
c. will be split equally between consumers and producers.
d. cannot be determined because the burden of a tax is not influenced by the elasticities of supply and demand.
B
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In the United States in 2013, the Bureau of Economic Analysis began counting spending on research and development as ________, which counts as a part of GDP
A) intermediate goods B) investment C) consumption D) depreciation
The investment function implies that current output does not influence investment. Does that make sense?
What will be an ideal response?
Consistency for the sample average can be defined as follows, with the exception of
A) converges in probability to . B) has the smallest variance of all estimators. C) . D) the probability of being in the range ± c becomes arbitrarily close to one as n increases for any constant c > 0.
(Last Word) The inverse dependency ratio is defined as:
A. the number of people of working age divided by the number of dependents. B. the number of dependents divided by the number of people of working age. C. the number of seniors over age 65 divided by the number of youths under age 20. D. the number of youths under age 20 divided by the number of seniors over age 65.