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3 years ago

1.suppose that a tax is placed on books. if the seller pays the majority of the tax, what do we know?

Arts

2 answers:

marusya05 [52]3 years ago

5 0

Answer:

1. - c

2. - b

marin [14]3 years ago

4 0

Answer:

1. The answer is a. the supply curve is more inelastic than the demand curve.

2. The answer is b. 4.

Explanation:

1. If a tax is placed on any product, it is typically shared by the seller and buyer. How much each one bears depends on the relative price elasticity of demand and supply.

When supply is more inelastic compared to demand, then the seller bears most of the tax burden. When demand is more inelastic compared to supply, then the buyer bears a greater incidence of the tax burden.

Therefore, in the given scenario, where the seller pays most of the tax imposed on books, it is evident that the supply is more inelastic than demand. This corresponds to option a.

2. The supply curve is given as Q = 10 + 4P.

We can rewrite it as Q = 4P + 10

This equation is of the form y = mx + c, where m is the slope and c is the y-intercept of the curve.

Hence, for the given equation, slope = m = 4. This makes b. the correct option.

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