Burden of sales tax, Why does the burden of sales tax fall

Burden of sales tax

Reference no: EM1374412

Why does the burden of sales tax fall completely on consumer when the price elasticity of demand is perfectly inelastic; the seller when perfectly elastic. and the prefect inelastic supply and perfectly elastic supply.

Reference no: EM1374412

Questions Cloud

Macroeconomic study questions : Assume that the market labor supply and labor demand equations are given through Qs = 5W and Qd = 30 - 5W. If a minimum wage is set at $4.00 (W = 4),

Question based on local currencies : About thirty United States localities circulate their own currency with names like "Ithaca Hours" and Dillo Hours." Doing so is perfectly legal although through law they are subject to a 10% federal tax, which currently the government is not collecti..

Determine the maximum possible increase in money supply : The Federal Reserve buy $100 million worth of government securities in open market. If the required reserve ratio is .6, determine the maximum possible increase in the money supply?

Analyzing the market for minivans : Suppose you are analyzing market for minivans. What will be the impact on the equilibrium price and quantity of each of the following events on the minivan market?

Burden of sales tax : Why does the burden of sales tax fall completely on customer when the value elasticity of demand is perfectly inelastic; the seller when perfectly elastic.

Estimate equilibrium price and quantity : The box industry was perfectly competitive. The lowest point on long run average cost curve of each of identical box producers was dollar four, and this minimum point occurred at an output of 1,000 boxes every month.

Objective questions - macroeconomics : If the Fed printed too much money, money's relative price would and the money price of goods would, If workers begin to expect more inflation in the future, then we would expect that:

Determine and graph the equations of the tangent lines : Find the range of angles that trace out the full graph and determine and graph the equations of the tangent lines at each relative maximum of r

Determine equilibrium price and quantity : The long run supply curve for a particular type of kitchen knife is horizontal line at a price of dolla three per knife. The demand curve for such a kitchen knife is

User Account

All Pages