ECONOM 1014 Chapter 6-8: Curve Notes
Document Summary
When demand is less elastic than supply: sellers pay less of a tax than do buyers. The main difference between the earned income tax credit (eitc) and economist edmund phelps"s proposed wage subsidies is that: the eitc is targeted only at families with children. If the demand for cigarettes is less elastic than the supply of cigarettes, then the burden of a cigarette tax will: fall mainly on the buyers. When demand is less elastic than supply, sellers pay less of a tax than do buyers. Given an upward-sloping supply curve and a downward-sloping demand curve, a. per unit tax on packs of cigarettes will: raise the price of cigarettes by less than . If the government imposes a tax on farmers for every 5 pounds of oranges grown: deadweight loss in the orange market. A government subsidy causes a deadweight loss in the market.
