All categories

3 years ago

When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic,

Business

1 answer:

kondaur [170]3 years ago

4 0

Answer:

a. buyers of the good will bear most of the burden of the tax.

Explanation:

When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic, buyers or consumers of the good will bear most of the burden of the tax.

However, when tax is imposed on a good whose supply is relatively inelastic and the demand for the goods is relatively elastic, the producers or sellers would be responsible for the tax burden of the goods.

Generally, tax revenues are larger with respect to the inelasticity of demand and supply.

You might be interested in

What kind of drug test does homedepot do in the location of Johnston, rhode island

Rina8888 [55]

They drug test weed. Why would they have crack tests lol

4 0

3 years ago

Read 2 more answers

A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year: (3 points)

Lostsunrise [7]

Answer:

Particulars Amount

Provision for uncollectible $6,080 ($76000*8%)

Less: Provision already made <u>$1,000</u>

Provision to be made <u>$5,080</u>

Date Particulars Debit Credit

31-Dec Bad Debts $5,080

To Allowance for Doubtful Accounts $5,080

(Being the adjusting entry to estimate bad debts)

4 0

3 years ago

Is a stackelberg solution a Nash (stable) equilibrium? Explain. 2. Does the solution change if stackelberg game is considered in

e-lub [12.9K]

The Stackelberg solution can be used to find the perfect or stable Nash equilibrium or equilibria.

<h3>What is this equilibrium about?</h3>

Other answers:

Based on the above, Note that the strategy profile is one where one serves best each player, and based on the strategies of the other player and it covers the fact that all player playing in a Nash equilibrium must be in every subgame.

Note also that The Stackelberg leadership model is said to be a kind off strategic game that is played in economics where the leader firm is known to moves first and then the follower firms is said to then move in a sequential manner and I think, the solution do not change if stackelberg game is considered in the long run.

I believe that the stackelberg leader will not collude with the stackelberg follower but in a lot of cases, there may be a collusion.

Yes, a Stackelberg leader can be more likely or less likely to merge with the follower firm as a merger can be profitable to them.

Learn more about equilibrium from

brainly.com/question/517289

#SPJ1

8 0

2 years ago

The following transactions apply to Ozark Sales for Year 1:

attashe74 [19]

Answer:

Current liabilities: Accounts payable$130,000

Sales tax payable 8,800

Warranty Payable 4,000

Interest payable 667

Notes payable 50,000

Total current liabilities$193,467

Explanation:

7 0

2 years ago

The negative feeling that one should have made another purchase, consumption, or disposition decision than one actually did is r

marta [7]

Post-decision regret corresponds to the negative feeling that an individual should have made a different purchase decision than he actually did.

<h3 /><h3>What causes post-decision regret?</h3>

In a purchase process, the consumer looks for products and services that satisfy their needs. After the purchase is made, regret may arise if the product or service does not satisfy those needs.

Therefore, post-purchase decision regret can be related to a negative perception of the benefits of the product and its quality, for example.

Find out more information about the purchase process here:

brainly.com/question/5295378

6 0

2 years ago