BIOS-2014 : PGEE Study Guide
Document Summary
Everything else held constant, producer surplus in the market for t-shirts will ____ today. Suppose t-shirt buyers, but not sellers, expect the price of t-shirts to decrease next month. Everything else held constant, consumer surplus in the market for t-shirts will ____ today. Answer true or false to the following statement: the difference between the price buyers pay for a good and the price sellers receive form selling it is the amount of the tax. Suppose the government imposes an excise tax of on a market. Suppose further that the price elasticity of demand for the good is 0,9 and the price elasticity of supply is 0. 3. Everything else held constant, the sellers will bear ___ percent of the burden of the tax. Buyers will bear none of the burden of an excise tax if supply is perfectly ____. Sellers will bear none of the burden of an excise tax if supply is perfectly ____.
