Author Question: The government of Healthyland imposes a tax on sellers of salt. The tax is 0.10 per pound. With no ... (Read 49 times)

wenmo · **on:** Jun 29, 2018

The government of Healthyland imposes a tax on sellers of salt. The tax is 0.10 per pound. With no tax, the market price of salt is 0.40 per pound. The demand for salt is perfectly inelastic, and the elasticity of supply is 1.5.

With the tax, the price that sellers of salt in Healthyland receive and keep is A) 0.40 per pound.
B) 0.35 per pound.
C) 0.45 per pound.
D) 0.50 per pound.

Question 2

As owner of a one-third share of a partnership, Josh is legally liable for

A) none of its debts.
B) one-third of its debts.
C) all of its debts.
D) all of its taxes but none of its private debt.