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Author Question: To prevent obesity, the government may establish a tax on high caloric foods, such as twinkies. A ... (Read 80 times)

Evvie72

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To prevent obesity, the government may establish a tax on high caloric foods, such as twinkies. A twinkie tax will have the smallest impact on quantity demanded when the demand curve for twinkies is
 
  A) perfectly elastic.
  B) perfectly inelastic.
  C) more elastic than the supply curve.
  D) both A and B.

Question 2

Who will bear the burden of a 0.50 tax placed on soda suppliers (consumer or seller) in a soda market where Qd = 225-10P and Qs = 50 + 15P?
 
  A) Consumers pay 0.30 of the tax, bearing the burden.
  B) Consumers pay 0.25 of the tax, bearing the burden.
  C) Sellers pay 0.25 of the tax and bear the burden.
  D) Sellers pay all of the tax and bear the burden.


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bhavsar

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Evvie72

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Reply 2 on: Jul 1, 2018
:D TYSM


tuate

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Reply 3 on: Yesterday
Gracias!

 

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