if the city of San Jose removes a tax on hotel rooms, then the price paid by buyers will Group of answer choices 1. increase, and the price received by hotel owners will increase. 2. increase, and the price received by hotel owners will decrease. 3. decrease, and the price received by hotel owners will increase. 4. decrease, and the price received by hotel owners will decrease. A $0.15 tax levied on the sellers of Snickers chocolate will cause the Group of answer choices 1. supply curve for Snickers chocolate to shift down (=increase) by $0.15 2. supply curve for Snickers chocolate to shift up (=decrease) by $0.15. 3. demand curve for Snickers chocolate to shift down (=decrease) by $0.15. 4. demand curve for Snickers chocolate to shift up (=increase) by $0.15.

if the city of San Jose removes a tax on hotel rooms, then the price paid by buyers will Group of answer choices 1. increase, and the price received by hotel owners will increase. 2. increase, and the price received by hotel owners will decrease. 3. decrease, and the price received by hotel owners will increase. 4. decrease, and the price received by hotel owners will decrease. A $0.15 tax levied on the sellers of Snickers chocolate will cause the Group of answer choices 1. supply curve for Snickers chocolate to shift down (=increase) by $0.15 2. supply curve for Snickers chocolate to shift up (=decrease) by $0.15. 3. demand curve for Snickers chocolate to shift down (=decrease) by $0.15. 4. demand curve for Snickers chocolate to shift up (=increase) by $0.15.

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 20RQ: Under which circumstances does line tax burden fall entirely on consumers?

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Under which circumstances does line tax burden fall entirely on consumers?
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