Which of the following is considered to be the "direct burden" of a tax?image 2Ⓒ A. the income tax that is deducted directly from salary incomeB. the administrative costs associated with paying the taxO C. the tax-deductible expenses for the person who pays the taxO D. the administrative costs associated with collecting the taxO E. the total revenue collected by the tax Refer to Figure 18-3. Suppose that supply is perfectly elastic and the price of this good is initially in equilibrium at P₁. If an excise taxraises the price from P₁ to P4, the excess burden of the tax isA.the area P₁ CP4-O B. the area P₁ Cq₁0.EROC. the area P3AP4-O D.the area BFC.O E. impossible to calculate from the given information.PAP3$ P2P₁0FIGURE 18-3OAE:B92Quantityimage 1Demand

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Refer to Figure 18-3. Suppose that supply is perfectly elastic and the price of this good is initially in equilibrium at P₁. If an excise tax raises the price from P₁ to P4, the excess burden of the tax is A. the area P, CP4- OB. the area P₁ Cq₁0. OC. the area P3AP4- OD. the area BFC. O E. impossible to calculate from the given information. PA P3 $ P2 P₁ 0 FIGURE 18-3 mo A B F: 92 Quantity C 9₁ image 1 Demand

Refer to Figure 18-3. Suppose that supply is perfectly elastic and the price of this good is initially in equilibrium at P₁. If an excise tax raises the price from P₁ to P4, the excess burden of the tax is A. the area P, CP4- OB. the area P₁ Cq₁0. OC. the area P3AP4- OD. the area BFC. O E. impossible to calculate from the given information. PA P3 $ P2 P₁ 0 FIGURE 18-3 mo A B F: 92 Quantity C 9₁ image 1 Demand

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...

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PA P3 $ P2 P₁ 0 ош A Di E 93 B 92 Quantity U 91 Demand Suppose that supply is perfectly elastic and the price of this good is initially in equilibrium at P1. If an excise tax raises the price from P1 to P2, the excess burden of the tax is area A) P3AP4. B) P1FBP2. _C) P1CBP2._____D) BFC. E) P2BP3.
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