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devlian [24]
3 years ago
6

Suppose the price elasticity of demand is relatively elastic and the price elasticity of supply is relatively inelastic in a spe

cific market. If an excise tax is imposed on this good, who will bear the greater burden of the tax?
a. government
b. consumers
c. producers
d. both consumers and producers equally
Business
1 answer:
Rzqust [24]3 years ago
7 0

Answer:

c. producers

Explanation:

Since it is given in the question that the price elasticity of demand is relatively elastic but the price elastic of supply is relatively inelastic but if the excise tax is imposed on the goods so the greater burden of the tax would be on the producers as the supply is inelastic so the producers could not changed much but if we compare to the consumers, the consumer could change the demand more than before due to the elastic in demand.

So, the correct option is c.  

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Municipal bonds are tax exempt and so are attractive for this reason. If John is to be indifferent between the two, the corporate bond would have to offer a return that when adjusted for tax, will give the same return as the municipal bond.

Assume that return is x;

x * ( 1 - 17%) = 10.2%

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3 years ago
2. A fancy steakhouse in a shopping mall offers a 20% discount to employees of other stores in the mall, provided that they eat
krok68 [10]

Answer:

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4 years ago
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