Let's say that gasoline is subject to a $0.50 excise tax in your city. This tax affects both buyers and sellers equally.
Depending on the elasticity of demand and supply, a tax's burden is split between purchasers and sellers. Depending on their alternatives, buyers' and sellers' desire to exit the market is represented by elasticity. The relationship between supply and demand price elasticity and tax incidence is also possible. The tax burden is placed on the purchasers when supply is more elastic than demand. The cost of the tax will be borne by the producers if demand is more elastic than supply.
Learn more about the burden of this tax here.
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Answer:
Amount of money the employee will earn each month.
Answer:
Option 1
Explanation:
The US Census Bureau will help you identify the kind of population living in your neighborhood.
<span>A. Medicare provides health care for older people, while Medicaid provides health care for people with low incomes.</span>
Answer:
a. in the absence of transaction costs, private parties can solve the problem of externalities on their own.
Explanation:
The Coase Theorem is a theorom used in economics that states that when there are complete competetive markets with no transaction costs, an efficient set of inputs and outputs to and from production-optimal distribution will be selected. It is a method of tackling the inefficiency caused by the externality by awarding property rights to the externality to one party and allowing the other parties to bargain their way to an efficient solution.
