1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lady bird [3.3K]
1 year ago
13

When the elasticity of demand for a product is __________ the elasticity of supply, consumers pay __________ of the tax on the p

roduct.
Business
1 answer:
mezya [45]1 year ago
6 0

When the elasticity of demand for a product is smaller than the elasticity of supply, consumers pay majority of the tax on the product.

The way the tax burden is distributed between purchasers and sellers is known as the tax incidence.

The relative price elasticity of supply and demand determines the tax incidence.

Usually, both the producers and the consumers of the taxed goods bear the incidence, or burden, of the tax.

But all we have to do is look at the elasticity of demand and supply to determine which group will be carrying the bulk of the load.

The majority of the tax burden falls on consumers when supply is more elastic than demand.

The majority of the tax burden falls on the producers when demand is more elastic than supply.

The less elastic the demand and supply are, the higher the tax revenue.

Hence, When the elasticity of demand for a product is smaller than the elasticity of supply, consumers pay majority of the tax on the product.

Learn more about elasticity of demand:

brainly.com/question/24961010

#SPJ1

You might be interested in
According to MACRS tax rate table, which of the following classes uses straight-line depreciation?
Vinil7 [7]
The answer is Residential rental property
8 0
3 years ago
Variable costs are
Semmy [17]

Answer:

the costs that change depending on a company's performance

Explanation:

Variable costs refer to the costs that fluctuate with the level of production. An increase or decrease in the output level results in variable costs moving in the same direction. If the business stops production, the variable costs will be nil.

Raw materials and packaging costs are good examples of variable costs. The more a company produces, the more materials it consumes, and the higher the costs of purchasing the materials.

6 0
3 years ago
Cox Electric makes electronic components and has estimated the following for a new design of one of its products:
vfiekz [6]

Answer:

a) attached below

b) P( profit ) = TR(q) - TC(q)

c) attached below

d) -$5000 ( loss )

Explanation:

Given data:

Fixed Cost = $10,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

<u>a) Influence diagram to calculate profit </u>

attached below

<u>b) derive a mathematical model for calculating profit.</u>

VC = variable cost per unit , LC = per unit labor cost , MC = per unit marginal cost, TC = Total cost of manufacturing , FC = Fixed cost, q = quantity, TR = Total revenue, R = revenue per unit

VC = LC + MC

TC (q) = FC + ( VC * q )

TR (q) = R * q

P( profit ) = TR(q) - TC(q) ------------ ( 1 )

c)  attached below

<u>d) If Cox Electrics makes 12,000 units of the new product </u>

The resulting profit = -$5000

q = 12

P = TR ( q ) - TC ( q )

  = ( R * q ) - ( Fc + ( Vc * q ) )

  = ( 0.65 * 12000 ) - ( 10,000 + ( 0.25 * 12000 )

  = -$5200

3 0
3 years ago
Oh, no! The television was finally delivered today, but was left on the porch by the delivery company. When Jamie Lee was finall
stepan [7]

Answer:

Jamie Lee should call her credit card company and ask them to stop payment for the television since the company has refused to accept a return of the television.

Explanation:

The Fair Credit Billing Act is a law that protects customers from different types of disputed charges. According to this law an individual has the right to stop the payment of a service he/she is not completely satisfied with.

This law protects a customer from unfair billing practices such as errors in calculation, wrong address. This law only applies to customers that have a credit card. This law is very important because it enables a customer to withhold payment for displeased services.

6 0
3 years ago
10 times as as 100 is
Kazeer [188]
The answer to this is 1000
6 0
3 years ago
Other questions:
  • Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Michael Mirer worked for Dawson Company for six months t
    5·1 answer
  • Suppose the United States can produce two goods, cloth and tea. Suppose there was a technological breakthrough in making cloth O
    11·1 answer
  • On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume tha
    6·1 answer
  • Of the 141 companies on the list, jason chose to survey only 75 of them. he sent surveys to both small as well as large companie
    8·1 answer
  • When comparing the difference between an upstream and downstream transfer of inventory, and using the initial value method, whic
    5·1 answer
  • MC Qu. 141 Comet Company accumulated... Comet Company accumulated the following account information for the year: Beginning raw
    9·1 answer
  • Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy camer
    9·1 answer
  • How would you convince your investor audience about the merits of your investment idea? ( give some decisions)
    12·1 answer
  • If Jordan makes only the minimum monthly payments in March, April, and May, what will his balance be after he makes the minimum
    6·1 answer
  • Which field deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!