With a $2 tax per bag of apples, buyers now pay $5.75 per bag. What is the final price per bag of apples received by sellers? The question of who pays the greater amount of a commodity tax is determined by: Congress.
Why do cotton growers spend billions of dollars to dam rivers and transport water hundreds of miles to grow cotton in California deserts?
Why do cotton growers spend billions of dollars to dam rivers and transport water hundreds of miles to grow cotton in California deserts? The water used to grow California cotton is high in mineral contents, making for a bigger cotton yield.
Why do smokers pay almost all the tax that is assessed on cigarettes?
Which of the following is the correct answer to the question: Why do smokers pay almost all the taxes assessed on cigarettes? I. Because they are addictive, the demand for cigarettes is relatively elastic when compared to the supply curve of cigarettes.
Why are there more births in the United States in late December than in early January quizlet?
Terms in this set (26) Why are there more births in the United States in late December than in early January? Parents get a tax deduction if babies are born before the year end.
Who ultimately pays the tax depends on who writes the check to the government?
1. Who ultimately pays the tax does not depend on who writes the check to the government.
Who bears the greater burden of this tax the buyers or the sellers why?
The tax incidence depends on the relative price elasticity of supply and demand. When supply is more elastic than demand, buyers bear most of the tax burden. When demand is more elastic than supply, producers bear most of the cost of the tax. Tax revenue is larger the more inelastic the demand and supply are.
What determines how the burden of a tax is divided between buyers and sellers Why?
The burden of a tax is divided between buyers and sellers depending on the elasticity of demand and supply. When a good is taxed, the side of the market with fewer good alternatives cannot easily leave the market and thus bears more of the burden of the tax.
When a government market intervention causes the price received by sellers to exceed the price paid by buyers the difference between them is called?
raise the price of cigarettes by less than $1. When a government market intervention causes the price received by sellers to exceed the price paid by buyers, the difference between them is called: a subsidy wedge.
Which of the following is the most correct statement about tax burdens?
Which of the following is the most correct statement about tax burdens? A tax burden falls most heavily on the side of the market that is inelastic.
Why is tobacco tax so high?
In California, the vast majority of state taxes on cigarettes are earmarked for specific purposes, including breast cancer research and treatment, anti -tobacco education, childhood tobacco use prevention, hospital services, medical research, local parks and recreation programs, law enforcement, and early childhood
Can smoking be prevented by raising the price of cigarettes?
Based on a comprehensive review of evidence, the Surgeon General has called raising prices on cigarettes “one of the most effective tobacco control interventions” because increasing price is proven to reduce smoking, especially among kids.
Why should we tax cigarettes?
Health Win: Tobacco tax increases are one of the most effective ways to reduce smoking and other tobacco use, especially among kids. Higher tobacco taxes also save money by reducing tobacco-related health care costs, including Medicaid expenses.
What do subsidies and commodity taxes have in common?
What do subsidies and commodity taxes have in common? Both policies have a greater impact on the side of the market with the more inelastic curve. If an external cost is present in a market, economic efficiency may be enhanced by: government intervention.
When an effective price ceiling causes a shortage some of the buyers who value the good the most may not be able to get the good Why does this occur?
When an effective price ceiling causes a shortage, some of the buyers who value the good the most may not be able to get the good. Why does this occur? The highest-value users cannot outbid the lower-valued users and so the seller cannot distinguish between them.
What is the difference between a tax and a subsidy?
Subsidy. While a tax drives a wedge that increases the price consumers have to pay and decreases the price producers receive, a subsidy does the opposite. A subsidy is a benefit given by the government to groups or individuals, usually in the form of a cash payment or a tax reduction.