question archive The government decides to impose a per unit tax on the sale of beer levied on the buyers of beer
The government decides to impose a per unit tax on the sale of beer levied on the buyers of beer
Subject:EconomicsPrice:2.88 Bought3
The government decides to impose a per unit tax on the sale of beer levied on the buyers of beer. If the market for beer is perfectly competitive then _____.
a. if the price elasticity of demand for beer is -2.7 and the price elasticity of supply is +1.4, the effective burden of the tax will be greater on the buyer than on the seller
b. if the price elasticity of demand for beer is -0.7 and the price elasticity of supply is +0.4, the effective burden of the tax will be greater on the seller than on the buyer
c. if the price elasticity of demand for beer is -0.3 and the price elasticity of supply is +0.9 the effective burden of the tax will be greater on the seller than on the buyer
d. if the price elasticity of demand for beer is -1.9 and the price elasticity of supply is +2.4, the effective burden of the tax will be greater on the seller than on the buyer
e. if the price elasticity of demand for beer is -2.5 and the price elasticity of supply is +1.6, the effective burden of the tax will be greater on the buyer than on the seller
Option 1
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