Answer:
It can be concluded about the elasticity of demand and supply prices that supply is more elastic than demand
Explanation:
Price in the market is determined by demand and supply, it is measured in terms of the variables quantity and variables price. When a tax is placed on a product, it generate a change in the market equilibrium, this is because buyers pay more and sellers receive less.
Therefore, a tax causes the supply curve to move up and the demand curve to move down.
To know the distribution of tax, the incidence is measured through the elasticity of the supply and demand curve, which measures the sensitivity of the quantity, demanded of products before a price change.
If the supply curve is more elastic than the demand curve, this is because when the price paid by consumers increase more than the price the sellers receive decreases, the impact of the tax is stronger for consumers.
The total tax on a unit of bottled water =
$2.50 - $2 = $0.50
$2 - $1.75 = $0.25
$0.15 + $0.25= $0.75
I believe that it is GOVERNMENT and PROPORTIONAL. money is directly sent to the governmnet and it is proportional because it is the same percentage not the same amount. if it was the same amount for every person it would be regressive and if it was progressive it would be more for people who make more money.
The answer is A) supplies they don't take it as a services or goods nor is it for the capital.
A General Education Diploma
Answer:
The correct answer is the option C: changes in M in the short run can cause Real GDP to fall.
Explanation:
To begin with, the monetarist economists are the one that support the idea of not having any intervention from the government regarding the economy and moreover they are the ones whose ideology focus mainly in the money, as it name indicates. Therefore that when the government decides in the short run to increase the amount of the money supply then the monetarists argue that the action done by them will cause the Real GDP to fall because of the high inflation that it will cause the increase of the money supply and consequently low demand, etc.
