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
Valentin [98]
3 years ago
10

Assume the demand curve is more elastic than the supply curve for the product: chewing tobacco. If the government wants to tax c

hewing tobacco by requiring suppliers to pay $1 per can of tobacco they sell, how will the burden of the tax be borne?
Business
1 answer:
Over [174]3 years ago
4 0

Answer:

The producers will bear more of the tax than the consumer because the supply curve is more inelastic than the demand curve.

Explanation:

The options to this question wasn't provided. Here are the options:

The consumers will bear more of the tax than the producer because the supply curve is more inelastic than the demand curve.

The producers will bear the entirety of the tax because the supply curve is more inelastic than the demand curve.

The producers will bear more of the tax than the consumer because the supply curve is more inelastic than the demand curve.

The consumers will bear the entirety of the tax because producers set the price.

The producers will bear the entirety of the tax because the government imposed the tax directly on them.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

Supply is elastic if a small change in price has a greater effect on the quantity supplied.

The more elastic demand or supply is the more sensitive quantity demanded or supplied to changes in price.

The burden of tax refers to who pays the tax.

If demand is more elastic that supply it means that demand is more price sensitive to changes in price that supply.

This means that if a tax is imposed which increases the price of the good, quantity demand would change more than quantity supplied.

Therefore, the burden of tax is borne by the party with the less elasticity.

I hope my answer helps you

You might be interested in
Many new restaurants have opened in Collegetown in recent years. Given this change in supply, what type of demand would result i
Darina [25.2K]

Answer: Inelastic demand

Explanation:

When new restaurants have opened in College town in recent years, the supply for restaurant meals increase. This will lead to a rightward shift in the supply curve for restaurant meals leading to a fall in the price and an increase in the quantity. The fall in price will be larger the more inelastic demand is.  When demand is more elastic then a fall in price will be less when supply increases.

7 0
3 years ago
Define demand and supply​
daser333 [38]
They’re correct ^^!!!!
8 0
3 years ago
What is the expected value when a $1 lottery ticket is bought in which the purchaser wins exactly $10 million if the ticket cont
Nadusha1986 [10]

We expect to lose $0.37 per lottery ticket

<u>Explanation:</u>

six winning numbers from = { 1, 2, 3, ....., 50}

So, the probability of winning:

P(win) = \frac{ no of favorable outcomes}{no of possible outcomes}

P(win) = \frac{1}{^5^0C_6} \\\\P (win) = \frac{6! X (50 - 6)!}{50!} \\\\P(win) = \frac{6! X 44!}{50!} \\\\P(win) = \frac{1}{15,890,700}

The probability of losing would be:

P(loss) = 1 - P(win)

P(loss) = 1 - \frac{1}{15,890,700} \\\\P(loss) = \frac{15,890,699}{15,890,700}

According to the question,

When we win, then we gain $10 million and lose the cost of the lottery ticket.

So,

$10,000,000 - 1 = $9,999,999

When we lose, then we lose the cost of the lottery ticket = $1

The expected value is the sum of the product of each possibility x with its probability P(x):

E(x) = ∑ xP(x)

= 9,999,999 X \frac{1}{15,890,700}  + ( -1 ) X \frac{15,890,699}{15,890,700} \\\\=- \frac{5,890,700}{15,890,700} \\\\= - \frac{58,907}{158,907} \\\\= - 0.37

Thus, we expect to lose $0.37 per lottery ticket

7 0
3 years ago
On January 1, JC Co. accepted a 60-day, 6%, note in the amount of $10,000 from a customer. On March 2, the due date of the note,
sammy [17]

Answer:

Cash account in the amount of $10,100

Explanation:

The journal entry to be recorded for the receipt of payment is as:

Cash A/c.............................................Dr $10,100

        Note receivable A/c...................Cr  $10,000

        Interest Revenue A/c..................Cr  $100

Being recoded the receipt of payment

As payment is received so asset is increasing and any increase in asset is debited. Therefore, cash account is debited. And the note receivable got decrease will be credited and the interest revenue is also credited.

Computation of interest revenue is as:

Interest revenue = Amount × % of note × Days / Number of days in a year

= $10,000 × 6% × 60 / 360

= $100

Note: Assume 360 days in a year

3 0
3 years ago
I need to solve this question with a formal
asambeis [7]

Answer:

yes

Explanation:

he's been said to do with this was also like

3 0
3 years ago
Other questions:
  • Taxes are a part of a civil society, but they have a significant effect on supply and demand for goods. A tax is an extra cost a
    8·1 answer
  • Using the legend provided, classify each of the following statements: Legend A = Tax avoidance E = Tax evasion N = Neither
    8·1 answer
  • Gerald has a great deal of expertise about parakeets. he used to work in a pet store that sold over twenty different types of bi
    7·1 answer
  • Anton believes his company's overhead costs are driven (affected) by the number of machine hours because the production process
    8·1 answer
  • Joe Downey is currently 65 years of age. He is currently drawing $20,000 a year out of his IRA. He expects to live to 100 and wa
    11·1 answer
  • Sonia opened a yoga studio where she teaches classes and sells yoga clothing. Variable costs for Sonia's yoga studio include the
    7·2 answers
  • The 2017 balance sheet of Dream, Inc., showed current assets of $3,175 and current liabilities of $1,645. The 2018 balance sheet
    11·1 answer
  • Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease.
    5·1 answer
  • ‼️‼️ Which of the following statements about international business is the most
    8·2 answers
  • A stock transfer is used to move 400 t-shirts from Plant A to Plant B in the same company code. What is the change in value of i
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!