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Economics
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when the government imposes taxes on buyers or sellers of a good, society

a. is better off because the government’s tax revenues exceed the deadweight loss.

b. gains efficiency but loses equality.

c. moves from an elastic supply curve to an inelastic supply curve.

d. loses some of the benefits of market efficiency.

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Darryn D'Souza
Darryn D'SouzaLv10
8 Sep 2020
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Related questions

Please explain/prove your answers. Are the following statements true or false?

A. A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market.

B. If the government places a $2 tax in the market, the seller bears $2 of the tax burden.

C. Buyers and sellers rarely share the burden of a tax equally.

D. When a tax of $1.00 per gallon is imposed on sellers of gasoline, the supply curve for gasoline shifts upward, but by less than $1.00.

E. If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist.

Label each of the following statements about the economics of taxes as true or false.
 
A) The incidence of a tax is determined by which group (buyers or sellers)
must actually pay the government.

B) When demand is inelastic and supply is elastic, the burden of a tax falls
mainly on producers.

C) When demand is elastic and supply is inelastic, the burden of a tax falls
mainly on consumers.

D) An excise tax can distort incentives and create missed opportunities for
mutually beneficial transactions.

1.The key condition for equilibrium to occur in a market is: A. the demand curve equals the supply curve. B. quantity demanded equals quantity supplied. C. price equals quantity. D. demand for one good equals demand for all other goods.

2. Without taxes, the market price per bag of apples is $5. With a $2 tax per bag of apples, buyers now pay $5.75 per bag. What is the final price per bag of apples received by sellers? A. $5.00 B. $7.75 C. $3.00 D. $3.75

3.Which of the following is a reason why the demand curve for an item would be more elastic? A. The item is a necessity. B. People's incomes are very high relative to the cost of the item. C. The item has many very good substitutes. D. The cost of the item forms a very small part of the consumer's budgets.

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