What is the tax incidence?
Learning Goal: I’m working on a economics multi-part question and need an explanation and answer to help me learn.Question 13 ptsConsumers will be affected if the government imposes a tax on apples becauseGroup of answer choicesconsumer surplus would increase.the price of apples would increase and fewer apples would be purchased.revenues for apple growers would decrease.the government would collect revenue from the tax.producer surplus would decrease.Flag question: Question 2Question 23 ptsIn most cases, taxes make markets less efficient becauseGroup of answer choicesthey lower prices for consumers and cause firms to suffer.they increase firms’ profits at the expense of consumers.taxes are perceived as unfair by some taxpayers.the government often spends tax revenues on programs that some voters don’t like.they reduce consumer surplus and producer surplus.Flag question: Question 3Question 33 ptsTaxes causeGroup of answer choicesboth consumer and producer prices to increase.the consumer price to increase but leave producer prices unchanged.both consumer and producer prices to decrease.the consumer price to decrease and the producer price to increase.the consumer price to increase and the producer price to decrease.Flag question: Question 4Question 43 ptsAfter a tax is imposed, the difference between the price that consumers pay and the price that sellers receive equalsGroup of answer choicesloss of social welfare from the tax.per unit tax.deadweight loss from the tax.revenue from the tax.lost profit from the tax.Flag question: Question 5Question 53 ptsWhat is the tax incidence?Group of answer choiceswho pays the tax out of pocket.how much tax revenue the tax generates.who bears the burden of the tax.how the tax revenue from the tax is spent.government efficiency in providing goods and services.Flag question: Question 6Question 63 ptsThe DWL from a tax will be smaller when a product hasGroup of answer choicesfew complements.many substitutes.few substitutes.an elastic demand.an elastic supply.Flag question: Question 7Question 73 ptsThe incidence of a tax is determined byGroup of answer choiceswhich side of the market is less sensitive to a change in pricewho pays the tax out of pocket.whether the supply curve or demand curve shifts as a result of the tax.how much tax revenue it generates.how much paperwork there is to complete.Flag question: Question 8Question 83 ptsAs the size of a tax rate increases, eventuallyGroup of answer choicessupply can outweigh demand.willingness to pay can outweigh deadweight loss.demand can outweigh supply.deadweight loss can outweigh tax revenue.tax revenue can outweigh willingness to sell.Flag question: Question 9Question 93 ptsIf the government puts a tax on the buyers of milk, thenGroup of answer choicesbuyers will bear the entire burden of the tax.sellers will bear the entire burden of the tax.buyers and sellers will share the burden of the tax.the government will bear the entire burden of the tax.Flag question: Question 10Question 103 ptsThe decrease in total surplus that occurs after a tax is imposed is calledGroup of answer choiceswedge loss.revenue loss.deadweight loss.consumer surplus loss.Flag question: Question 11Question 113 ptsWhich of the following will decrease when the government puts a tax on a product?Group of answer choicesthe equilibrium quantity in the market for the good, the effective price of the good paid by buyers, and consumer surplusthe equilibrium quantity in the market for the good, producer surplus, and the well-being of buyers of the goodthe effective price received by sellers of the good, the wedge between the effective price paid by buyers and the effective price received by sellers, and consumer surplusNone of the above is necessarily correct unless we know whether the tax is levied on buyers or on sellers.Flag question: Question 12Question 123 ptsThe difference between social cost and private cost is theGroup of answer choicesloss in profit to the seller as the result of a negative externality.external cost of an externality.cost reduction when the negative externality is eliminated.cost incurred by the government when it intervenes in the market.Flag question: Question 13Question 133 ptsWhy do corrective taxes avoid the inefficiencies of most other taxes?Group of answer choicesCorrective taxes apply only to goods that are bad for people’s health, such as cigarettes and alcohol.Because corrective taxes take into consideration the costs to bystanders.Corrective taxes provide incentives for the conservation of natural resources.Corrective taxes do not affect deadweight loss.Flag question: Question 14Question 143 ptsAfter a tax is imposed, the price paid by consumers ________ and the price received by sellers ________.Group of answer choicesincreases; increasesincreases; decreasesdecreases; increasesdecreases; decreasesis unaffected; is unaffectedFlag question: Question 15Question 153 ptsExternalitiesGroup of answer choicesmake markets inefficient.cause equilibrium prices to be too high.benefit producers at the expense of consumers.cause equilibrium prices to be too low.Flag question: Question 16Question 163 ptsWhich quantity is socially optimal?Flag question: Question 17Question 173 ptsTo internalize the externality in this market, the government shouldGroup of answer choicesimpose a tax on this product.provide a subsidy for this product.forbid production.produce the product itself.Flag question: Question 18Question 1810 ptsAssume a tax of $6 per unit is imposed on this market.What will be the new quantity exchanged in this market?
What will be the new price that buyers pay?
What will be the new price that sellers receive?
How much of the tax will buyers pay?
How much of the tax will sellers pay?
Flag question: Question 19Question 1915 ptsThe government adds a $3 tax to this market.Calculate the following:Consumer Surplus = Producer Surplus =Tax Revenue = Total Surplus = Dead Weight Loss = Flag question: Question 20Question 2012 ptsa. What is the external cost?b. What is the external benefit?c. Is the private market doing too much or too little in the firstgraph?d. Is the private market doing too much or too little in the second graph?Flag question: Question 21Question 213 ptsSuppose a tax was reduced from $6.00 to $3.00. Compared to the $6.00 tax, the lower tax wouldGroup of answer choicesincrease tax revenue and increase the deadweight loss from the tax.increase tax revenue and decrease the deadweight loss from the tax.decrease tax revenue and increase the deadweight loss from the tax.decrease tax revenue and decrease the deadweight loss from the tax.tax revenue would stay the same and decrease the deadweight loss from the tax