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
andrey2020 [161]
3 years ago
11

The burden of a tax is shared by producers and consumers. Under what conditions will consumers pay most of the​ tax? Under what

conditions will producers pay most of​ it? A. It depends on who is legally obligated to pay the tax. Typically consumers are required to pay the tax and therefore bear most of the burden. B. If demand is relatively more elastic than​ supply, consumers will pay more of the tax. C. If demand is relatively less elastic than​ supply, consumers will pay more of the tax. D. It depends on who is legally obligated to pay the tax. Typically producers are required to pay the tax and therefore bear most of the burden
Business
1 answer:
juin [17]3 years ago
5 0

Answer:

The correct answer is option C.

Explanation:

Imposition of tax causes the market equilibrium price to increase. This creates a tax wedge by increasing the price paid by the buyer and reducing the price received by the seller.

So the burden of tax is shared by both buyers and sellers. Who will share most of the burden depends on their elasticity.

If the demand is more inelastic, consumers will share most of the burden. If the supply is more inelastic, producers will bear most of the burden.

You might be interested in
When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _______________
Blababa [14]

Answer:

opportunity cost

Explanation:

When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the opportunity cost of investing in physical capital.

6 0
2 years ago
The direct write off is used when:
Thepotemich [5.8K]

Answer:

The correct answer is letter "A": Uncollectible accounts are not anticipated or immaterial.

Explanation:

Direct write-off is a method used to record debts from credit sales. An allowance account is not used with this method but an account receivable directly written-off for the outstanding amount once it is determined to be uncollectible. This method is used for tax-reporting purposes.

3 0
3 years ago
How many languages in South Africa??​
Vaselesa [24]

Answer:

<em>There</em><em> </em><em>are</em><em> </em><em>1</em><em>1</em><em> </em><em>languages </em><em>in</em><em> </em><em>South</em><em> </em><em>Africa</em><em>.</em><em> </em><em> (Afrikaans, English, Ndebele, Pedi, Sotho, Swati, Tsonga, Tswana, Venda, Xhosa, and Zulu)</em>

4 0
2 years ago
Read 2 more answers
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
3 years ago
Thornbrough Corporation produces and sells a single product with the following characteristics: Per Unit Percent of Sales Sellin
AfilCa [17]

Answer:

The income will decrease by $21,000

Explanation:

Giving the following information:

Selling price $ 220

Variable expenses 44

Contribution margin $ 176

Sales in units= 7,000

Total contribution margin= 7,000*176= $1,232,000

Fixed expenses= ($901,000)

Net operating income= 331,000

Now, with the changes we calculate the new net operating income:

New sales price= $202

New fixed cost= (53,000 + 901,000)= 954,000

New unit sales= 8,000

Net operating income= 8,000*(202 - 44) - 954,000= $310,000

The income will decrease by $21,000

7 0
3 years ago
Other questions:
  • Pharoah Corporation provides its officers with bonuses based on net income. For 2017, the bonuses total $384,900 and are paid on
    6·1 answer
  • g "Seidman Company manufactures and sells 30,000 units of product X per month. Each unit of product X sells for $16 and has a co
    11·1 answer
  • Retail stores are often classified on the breadth and depth of their merchandise assortment. The breadth of the merchandise is t
    8·1 answer
  • Sales mix is the relative combination of:
    7·1 answer
  • Internal-operational communication is defined as:
    6·1 answer
  • Boss Enterprises currently sells its products for per unit. Management is contemplating a ​% increase in the selling price for t
    7·1 answer
  • On December 31, 2018, Adelphi Corporation has outstanding 500 shares of $100 par value, 4% cumulative and nonparticipating prefe
    13·1 answer
  • Mike deposited $100,000 in a bank and procured a certificate of deposit on it, payable to himself, for repayment in five years w
    12·1 answer
  • Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest
    13·1 answer
  • (a) what criteria might chobani use when it seeks markets in new countries and (b) what three or four countries meet these crite
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!