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
In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks
evablogger [386]

Answer:

The correct answer is option D.

Explanation:

The price of a 12 ounce can of CheapFizz is 75 cents.

After a deal with State U, CheapFizz gets exclusive rights to sell soft drink on the campus.

This makes CheapFizz a monopoly firm.

A monopoly firm is a price maker and produces at the point where the marginal cost is equal to marginal revenue. At this point the output level is lower than socially optimal and the price level is higher than socially optimal.

This means that the price of CheapFizz cans will be more than 75 cents after the deal.

5 0
3 years ago
At age seventeen, Luke Skywalker enters into a contract to buy a dozen movies from eHD Stream, Inc., an online video service. So
serg [7]

Answer:

<u>Executed</u>

Explanation:

Ratification of a contract refers to formally approving a contractual obligation. To dis-affirm refers to back out of a contract wherein the parties to it return the consideration.

A minor, an individual below the age of eighteen years does not have capacity to a valid contract. A minor may void a contract before attaining majority.

When a contract has been signed by both the parties to it, with transaction closed, the contract shall be termed as executed.

In the given case, Luke a minor entered a contract to buy movies. Later upon attaining majority, Luke decides to disaffirm i.e not honor it. The contract in such a scenario shall be considered as formally approved i.e ratified by both parties if it was executed.

In such a case, Luke will have to honor the contract since the disaffirmation period i.e before his attaining majority has lapsed.

5 0
3 years ago
On March 4, 2009, the SEC reached an agreement with Krispy Kreme Doughnuts, Inc., and issued a cease-and-desist order to settle
Hitman42 [59]

Answer:

sorry i just need points ;-;

Explanation:

BUT! oh, jeez. yeah, im only in 9th grade, but if you have any other questions like math, i can try?

8 0
3 years ago
10) Focused cost leadership is observed when a product has the lowest cost ________. A) within an industry segment B) across the
Nezavi [6.7K]

Answer:

C) within an industry

Explanation:

Cost leadership is being competitive by having lowest cost op operation in the whole industry. This makes the company to offer cheap product to the customers and have an competitive edge in the market. Many big corporation  adopt cost leadership in their strategic marketing campaigns. So, the correct answer is C) within an industry.

3 0
3 years ago
Cabell Products is a division of a major corporation. Last year the division had total sales of $21,720,000, net operating incom
Helga [31]

Answer:

1. Cabell Product Margin = Net operating income / Sales

Cabell Product Margin = 1346640 / 21720000

Cabell Product Margin = 0.062

Cabell Product Margin = 6.20%

2. Dacker Products Residual income = Net operating income - ( Average operating assets * Minimum required rate of return)

Dacker Products Residual income = 3758960 - (9900000*15%)

Dacker Products Residual income = 3,758,960 - 1,485,000

Dacker Products Residual income = 2,273,960

3. Agustin Return on investment = Net operating income / Average operating assets

Agustin Return on investment = 648980 / 4560000

Agustin Return on investment = 0.142320175

Agustin Return on investment = 14.23%

Agustin Turnover = Sales / Average operating assets

Agustin Turnover = 17810000 / 4640000

Agustin Turnover = 3.838362068965517

Agustin Turnover = 3.84

3 0
2 years ago
Other questions:
  • Your favorite ice cream travels from the producer, who manufacturers the product, through several other organizations before arr
    9·1 answer
  • You find a zero coupon bond with a par value of $10,000 and 30 years to maturity. The yield to maturity on this bond is 5.2 perc
    9·1 answer
  • Economic profits are Multiple Choice always larger than accounting profits. the sum of accounting profits and implicit costs. eq
    11·1 answer
  • When are monopolies good?
    14·2 answers
  • Paul is an employee at a marketing firm. He is someone who prefers to be instructed by his seniors and avoids taking major respo
    11·1 answer
  • A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain
    7·1 answer
  • Ron and Amie invested $5,000 in an educational savings account for their daughter when she was born. They were unable to ever ad
    15·1 answer
  • Which of the following is true of budgeting? Select one: a. Budgeting eradicates the need for keeping a buffer against uncertain
    6·1 answer
  • Which of the following businesses poses the highest degree of difficulty in e-commerce? Portals and infomediaries Businesses suc
    15·1 answer
  • The Fish House is expected to pay annual dividends of $1.23 and $1.25 at the end of the next two years, respectively. After that
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!