micro p133 7 101104

micro p133 7 101104 - Consumers of gasoline are hurt by...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Adam Petrone-ID #000490127 10/11/04 MicroEconomics Sattinger p. 133 #7 7. a) The incidence of a tax does not depend on who the tax is imposed upon. Taxes on buyers and sellers are equivalent. b) The tax would be more effective because when demand is elastic, people are less willing to deal with price increases and thus will reduce their consumption. c)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Consumers of gasoline are hurt by this tax because they are forced to pay more for the same product. d) Workers are hurt because the demand goes down and therefore the supply goes down and therefore the amount of workers that were previously needed will go down as well and workers will be forced to take a pay cut or lose their jobs....
View Full Document

Page1 / 2

micro p133 7 101104 - Consumers of gasoline are hurt by...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online