题目内容

Assume the government wants to impose a tax on wine. It wants to minimize the negative impact the tax has on consumers in the form of higher prices. It will achieve this goal if

A. a. demand is relatively elastic.
B. b. demand is relatively inelastic.
C. c. supply is relatively elastic.
D. d. the supply curve and the demand curve for wine have the same elasticity.

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If the tax on bottled water were raised by $1 per bottle, we would expect

A. a. buyers to bear the entire tax in the form of higher prices.
B. b. sellers to bear the tax in the form of lower prices.
C. c. part of the tax to fall on buyers in the form of higher prices, and part of the tax to fall on sellers in the form of lower prices.
D. d. government revenues to fall.

A law requiring sellers to pay the government a tax on cigarettes has the effect of

A. a. shifting the supply curve to the right.
B. b. changing the slope of the supply curve.
C. c. shifting the supply curve to the left.
D. d. changing the slope of the demand curve.

A tax placed on a product causes the price the buyer pays

A. a. and the price the seller receives to be higher.
B. b. and the price the seller receives to be lower.
C. c. to be lower and the price the seller receives to be higher.
D. d. to be higher and the price the seller receives to be lower.

Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall

A. a. entirely on the buyers.
B. b. entirely on the sellers.
C. c. entirely on the government.
D. d. on both the buyers and the sellers.

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