When a tax is l a. b. c. 25. evied on a good, the buyers and sellers of the good share the burden, provided the tax is levied on the sellers. provided the tax is levied on the buyers. provided a portion of the the sellers. tax is levied on the buyers, with the remaining portion levied o d. regardless of howthe tax is levied. 26. A tax on a good a. raises the price that buyers effectively pay and raises the price that sellers effectively b. raises the price that buyers effectively pay and lowers the price that sellers effectively receive receive. c. lowers the price that buyers effectively pay and raises the price that sellers effectively receive. d. lowe rs the price that buyers effectively pay and lowers the price that sellers effectively receive. When the government places a tax on a product, the cost of the tax to buyers and sellers a. is less than the revenue raised from the tax by the government. b. is equal to the revenue raised from the tax by the government. c. exceeds the revenue raised from the tax by the government. d. Without additional information, such as the elasticity of demand for this product, it i 27. impossible to compare the cost of a tax to buyers and sellers with tax revenue. 28. Deadweight loss is the a. b. c. d. decline in total surplus that results from a tax. decline in government revenue when taxes are reduced in a market. decline in consumer surplus when a tax is placed on buyers. loss of profits to business firms when a tax is imposed.
When a tax is l a. b. c. 25. evied on a good, the buyers and sellers of the good share the burden, provided the tax is levied on the sellers. provided the tax is levied on the buyers. provided a portion of the the sellers. tax is levied on the buyers, with the remaining portion levied o d. regardless of howthe tax is levied. 26. A tax on a good a. raises the price that buyers effectively pay and raises the price that sellers effectively b. raises the price that buyers effectively pay and lowers the price that sellers effectively receive receive. c. lowers the price that buyers effectively pay and raises the price that sellers effectively receive. d. lowe rs the price that buyers effectively pay and lowers the price that sellers effectively receive. When the government places a tax on a product, the cost of the tax to buyers and sellers a. is less than the revenue raised from the tax by the government. b. is equal to the revenue raised from the tax by the government. c. exceeds the revenue raised from the tax by the government. d. Without additional information, such as the elasticity of demand for this product, it i 27. impossible to compare the cost of a tax to buyers and sellers with tax revenue. 28. Deadweight loss is the a. b. c. d. decline in total surplus that results from a tax. decline in government revenue when taxes are reduced in a market. decline in consumer surplus when a tax is placed on buyers. loss of profits to business firms when a tax is imposed.
Answer
25.
d. regardless of how the tax is levied
Whenever tax is levied that means the prices will go up and when
prices go up that means that the demand will decrease which is a
loss for the supplier too. So when the tax is levied it is borne by
the buyer and the seller both so that demand is maintained with not
much loss to either of the party. But, yes how much it will be
shared depends upon the elasticity of the supply and demand of the
product.
26.
b. raises the price that buyers effectively pay and lowers the
price that sellers effectively receive
when tax is levied which means the price of the good goes up and
buyer has to pay more and the burden of it is borne by the seller
too so his income is effectively reduced too.
27.
d. without additional information, such as the elasticity of
demand for this product, it is impossible to compare the cost of
tax to buyers and sellers with tax revenue
Tax factor is borne by both the buyer and seller to maintain the
fairly good equilibirum so that the demand and supply factors are
functioning well in the market and anyone do not have to face the
full loss. But who faces how much loss is determined by the
elasticity of the demand and supply too, so these information also
needs to be given then only we can exactly determine the cost of
tax.
28.
a. decline in total surplus that results from a tax
Harm caused to economic efficiency and production due to tax is
referred to as Deadweight loss. It affects the cost of living and
thereby the surplus and there is reduction in the output.
