74. Suppose that a $0.75-tax is placed on gasoline. Under what circumstances will gasoline sellers end up shouldering the full burden of the tax?A) If supply is perfectly inelastic, and demand is downward-slopingB) If demand is perfectly inelastic, and supply is upward-slopingC) If supply is upward-sloping and demand is perfectly elasticD) The consumer and the seller always share the burden of the taxAnswer: CTopic: Tax Incidence and Efficiency LossDifficulty: 2 MediumLearning Objective: 19-03Bloom’s: Level 3 ApplyAACSB: Analytic[QUESTION]75. In general, the buyers will tend to pay a bigger share of a tax on a good when:
76. The supply of meat is more elastic in the long run than in the short run. Ceteris paribus, as time goes by, the burden of a tax on cattle will be increasingly passed on to the:[QUESTION]77. Which generalization is incorrect?Reference: 19-78Use the following to answer questions 78-86:The graphs below illustrate the market for a product on which an excise tax has been imposed by government.
You've reached the end of your free preview.
Want to read all 43 pages?