Suppose the price elasticity of demand for beer is

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Chapter 7 / Exercise 9
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78. Suppose the price elasticity of demand for beer is zero. If the government imposes an excise tax on the sellers of beer, the true burden of this tax will fall on: A.Buyers onlyB. Sellers onlyC. Both buyers and sellersD. There is no way of knowing
AACSB: AnalyticBloom's: ApplicationLearning Objective: 17-4Level: EasyTopic: Tax incidence and efficiency loss79. Which generalization is incorrect?
AACSB: AnalyticBloom's: KnowledgeLearning Objective: 17-4Level: DifficultTopic: Tax incidence and efficiency loss17-28
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Chapter 7 / Exercise 9
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Chapter 17 - Public Choice Theory and the Economics of Taxation80. Which statement is correct?
AACSB: AnalyticBloom's: KnowledgeLearning Objective: 17-4Level: DifficultTopic: Tax incidence and efficiency lossA supply and demand graph for a product on which an excise tax has been imposed by government.17-29
Chapter 17 - Public Choice Theory and the Economics of Taxation81. Refer to the above graph. What is the amount of the excise tax in terms of price per unit sold?
AACSB: AnalyticBloom's: ApplicationLearning Objective: 17-4Level: ModerateTopic: Tax incidence and efficiency loss82. Refer to the above graph. What is the total amount of tax revenue going to the government? A. $3B.$6C. $9D. $12
AACSB: AnalyticBloom's: ApplicationLearning Objective: 17-4Level: ModerateTopic: Tax incidence and efficiency loss

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