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Slav-nsk [51]
2 years ago
7

Which of the following is not correct? Select one: a. Taxes levied on sellers and taxes levied on buyers are not equivalent. b.

A tax places a wedge between the price that buyers pay and the price that sellers receive. c. The wedge between the buyers’ price and the sellers’ price is the same, regardless of whether the tax is levied on buyers or sellers. d. In the new after-tax equilibrium, buyers and sellers share the burden of the tax.
Business
1 answer:
liq [111]2 years ago
8 0

Answer:

The correct answer is option a.

Explanation:

Taxes levied on either buyers or sellers are equivalent. In both cases, the tax creates a wedge. This wedge is the difference between the price that the buyers have to pay and the price that the sellers receive.  

The price that the buyers have to pay increases while the price that the sellers receive decreases. But this tax wedge does not depend on whom the tax is levied, it depends on the elasticity of demand and supply. So whether the tax is levied on buyers or sellers, the tax wedge will remain the same.

The tax burden will be shared between both buyers and sellers. So it is incorrect to say that the taxes levied on sellers and taxes levied on buyers are not equivalent.

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There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. If the inflation rat
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Answer: The correct answer is "a. the dollar will depreciate and the peso will appreciate.".

Explanation:  If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that the dollar will depreciate and the peso will appreciate.

As inflation in the United States is higher, the dollar is affected by a loss of purchasing power, therefore it depreciates with respect to the Mexican peso.

5 0
2 years ago
Is the process of planning, scheduling, and then controlling the activities during system development?
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This process is called project management it leads a team or group of people with this process to achieve a goal they want or need to meet but sometimes at a certain time. I hope this helps! 
8 0
3 years ago
Michael worked for a textile manufacturer during the first half of the 20th century. When the supply of his company's textiles e
Alexandra [31]

Answer:

sales

Explanation:

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5 0
3 years ago
The Starr Co. just paid a dividend of $1.85 per share on its stock. The dividends are expected to grow at a constant rate of 4 p
Natasha2012 [34]

Answer:

Explanation:

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growth rate = 4% (g)

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r = 12%

Current price = D1/(r-g) = 1.924/(0.12-0.04) = 24.05

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7 0
3 years ago
Business are hiring workers and GDP starts to increase as consumer spending increases
Grace [21]

Answer:

True

Explanation:

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6 0
3 years ago
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