Sellers of a product with relatively inelastic demand

Assignment Help Business Economics

Reference no: EM13798127

When an excise tax is collected from sellers of a product with relatively inelastic demand, which of the following occurs?

Less revenue is collected than if the demand were elastic.

Most of the tax is avoided through product substitution by consumers.

Most of the tax burden is borne by the purchasers.

Most of the tax burden is borne by the suppliers.

Reference no: EM13798127

Questions Cloud

More expensive bundles of inputs are associated with : For given input prices, more expensive bundles of inputs are associated with:

Assignment consumer traits and behaviors : Analyze how social and cultural settings influence consumer behavior.

What is the real gain : An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The nominal GDP in 2000 was $672 billion and $1,690 billion for 2010; the real interest rate was 6.79% in 2000 and 3.71% in 20..

A luxury good is defined as one for which : A luxury good is defined as one for which:

Sellers of a product with relatively inelastic demand : When an excise tax is collected from sellers of a product with relatively inelastic demand, which of the following occurs?

The supply curve of a firm in the long run : The supply curve of a firm in the long run, is:

Assignment consumer traits and behaviors : Analyze how social and cultural settings influence consumer behavior.

Does the cost increase with more traveling : Create an interactive spreadsheet that allows the viewer to change some of the critical numbers to realize the possible risks involved with different variables.

Use the midpoint method to compute elasticity : The reason economists use the midpoint method to compute elasticity is that:

User Account

All Pages