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
Marina CMI [18]
3 years ago
15

In which of the following cases is it most likely that an increase in the size of a tax will decrease tax revenue? Answers: A) T

he price elasticity of demand is small, and the price elasticity of supply is large. B) The price elasticity of demand is large, and the price elasticity of supply is small. C) The price elasticity of demand and the price elasticity of supply are both small. D) The price elasticity of demand and the price elasticity of supply are both large.
Business
1 answer:
DiKsa [7]3 years ago
6 0

Answer:

The correct answer is option D.

Explanation:

An increase in the size of tax is likely to increase the tax revenue when the price elasticity of supply, as well as price elasticity of demand, are both large.  

The imposition of tax will cause an increase in the price of the product. If the price elasticity of demand is higher, an increase in the price will lead to a more than proportionate decrease in demand.  

At the same time, high price elasticity of supply means that when the tax is imposed the sellers will be able to reduce quantity more easily.  

So when less output is produced and demanded the tax revenue will also be lower.

You might be interested in
Fill in the blanks to complete the passage regarding the development of illegal markets in response to price ceilings. – are ill
djverab [1.8K]

Black markets are illegal markets that emerge in response to price controls. A few buyers are able to obtain the good at the open-market price; the rest must resort to illegal means. The additional demand is met by underground suppliers selling at much higher prices.

The government does not support the black market or any of their actions with getting items and selling them in other forms. Those who are in demand of a good when they have a hard time in getting it may purchase it illegally at a higher price just so they can receive that good. When there is an exchange of goods in the black market, these items are usually prohibited by the government and therefor illegally being sold.

3 0
4 years ago
The convenience offered by digital communication needs to be weighed against​ __________ and​ __________ concerns.
Doss [256]
<span>The convenience offered by electronic communication needs to be weighed against security and privacy concerns. Security and Privacy encompasses the rights and obligations of individuals and organizations with respect to the collection, use, retention, disclosure, and disposal of personal information. Security and Privacy is a risk management issue for all organizations, and many are looking to CPA firms for solutions.</span>
8 0
4 years ago
17. Lear is to become a partner in the WS partnership by paying $80,000 in cash to the business. At present, the capital balance
Vedmedyk [2.9K]

Answer:

Please see attachment

Explanation:

Please see attachment

3 0
3 years ago
Which type of credit is used for utilities? installment credit secured credit card service credit unsecured credit card
balandron [24]
The type of credit that is used for utilities is : Service credit

With service credit you can make it easier to pay utility bills such as gas, electricity, water, phone services, etc under one account

hope this helps
5 0
3 years ago
What car company has the slogan 'Built To Last'?
marshall27 [118]
GMC. Except GMC now also says "We are professional grade" as well
8 0
3 years ago
Other questions:
  • The NASDAQ is an example of what type of stock exchange?
    11·1 answer
  • The operations, management, and regulation of a financial conglomerate are the same irrespective of the types of services offere
    10·1 answer
  • The assets section of a classified balance sheet usually includes the subgroups: Multiple Choice Current
    8·1 answer
  • Which of the following is a disadvantage of equity capital?
    13·1 answer
  • What is the difference between direct and indirect promotional communication?
    12·1 answer
  • If no harm results from an allegedly negligent act, there is no liability.
    9·1 answer
  • Tri Fecta, a partnership, had revenues of $364,000 in its first year of operations. The partnership has not collected on $46,700
    8·1 answer
  • Who is called living lion of nepal and why and when he got this title​
    6·1 answer
  • assuming that prices rise over time, which inventory cost flow assumption will result in the lowest ending inventory?
    13·1 answer
  • _______________ involves you imagining yourself achieving your final goal.
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!