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Author Question: Consider an excise tax imposed on daily parking charges in the downtown of a small city. Before the ... (Read 59 times)

ega16

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on: Oct 12, 2022
Consider an excise tax imposed on daily parking charges in the downtown of a small city. Before the imposition of the tax, equilibrium price and quantity are $15 and 100 cars parked. (P = $15, Q = 100). The city government imposes a tax of $3 per car parked per day. Market equilibrium adjusts to P = $18 and Q = 100. Which of the following statements about the burden of the tax is correct?
◦ Price elasticity of supply is 0 and therefore the entire burden of the tax falls on the consumer.
◦ Elasticity of demand is 0 and therefore the entire burden of the tax falls on the consumer.
◦ Elasticity of supply is 1 and therefore the entire burden of the tax falls on the seller.
◦ The burden of the tax is shared equally by the seller and the consumer.
◦ Price elasticity of demand is 1 and therefore the entire burden of the tax falls on the seller
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by ega16 on Oct 12, 2022

Kevin5!

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Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ega16

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Reply 2 on: Oct 12, 2022
Excellent

JaynaD87

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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