Question 1
The excess burden of a tax is $5,000 and the tax revenue from this tax is $15,000. The total burden of this tax is
◦ $3,000.
◦ $5,000.
◦ $10,000.
◦ $20,000.
Question 2
There would be no excess burden from a tax if demand were
◦ unitarily elastic.
◦ perfectly elastic.
◦ perfectly inelastic.
◦ upward sloping.