Answer:
The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.
Explanation:
The amount of the tax on a bottle of wine is $5 ($3 + $2).
The burden on consumers is $3 ($9 - $6), which is the difference between the after-tax purchase price and the before-tax purchase price for consumers. This implies that the burden passed to consumers is $3 out of the total tax burden of $5.
The burden on producers is $2 ($6 - $4) which represents the difference between before-tax selling price and the after-tax selling price for the producers. This means that the burden passed to producers is $2 out of the total tax burden of $5.
If the tax burden were passed to the producers alone, the selling price would have been more than $11 ($6 + 5). This would have reduced demand for wine as consumers would have been forced to bear the total burden. This would have made the tax unequitable. This would have been the case unless demand is inelastic. That means that the total demanded is not sensitive to price increases.
Thanks admin for giving such valuable information through your article . Your article is much more similar to https://www.moschinooutletonlinestore.com/moschino-loves-printemps-bear-women-short-sleeves-short-dress-white.html word unscramble tool because it also provides a lot of knowledge of vocabulary new words with its meanings.
Answer:
A sudden sharp reduction in the availability of money or credit from banks and other lenders.
Answer:
D) Advertising agency long dash job order costing; Cell phone manufacturer long dash process costing
Explanation:
The job order costing system is used when the service or product offered are significantly different from others. In the case of an advertising agency, no service is the same since no client will require the same advertising campaign.
The process order costing system is used when the service or product offered are similar to others. In the case of a cell phone manufacturer, they might offer a few different models but in essence the products are very similar.
