Taxes on necessities that have low demand elasticities impose large excess burdens because consumers cant avoid buying

Question:

Taxes on necessities that have low demand elasticities impose large excess burdens because consumers can’t avoid buying them. Do you agree or disagree with that statement? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Mylab Economics With Pearson Access Code For Principles Of Microeconomics

ISBN: 9780135197141,9780135197103

13th Edition

Authors: Karl E. Case; Ray C. Fair; Sharon E. Oster

See More Books

Question Posted: Feb 21, 2024 02:00 AM

See More Questions

Ch 5. Worst Words to Use at Work? Displaying Confidence with Words No unread replies.No replies. Read the article . 10 worse things to say Page of 3 ZOOM The 10 Worst Things You Can Say At WorkJames...
The 10 Worst Things You Can Say At WorkJames LairdFebruary 19, 2020 at 12:30 pm-We all know that communication is vital in the office and can have a major effect on our careers. But how do we know if...
Image transcription text You encounter a split system that uses R-22 refrigerant and observe the following refrigeration parameters from the unit's control display. The unit is operating in cooling...
What is the capacity for each of the containers in Problems 4754? (Give answers in the U.S. system to the nearest tenth of a gallon or in metric to the nearest tenth of a liter.) Orange 25 cm Juice...
The length of each of the two equal sides of an isosceles triangle is 10 meters (see figure). The angle between the two sides is Î¸. (a) Write the area of the triangle as a function of...
A fire occurred in the factory premises on October 31, 2003. The accounting records have been destroyed. Certain accounting records were kept in another building. They reveal the following for the...
Give some examples of requirements where they define both objectives and constraints.
Novo is a Danish multinational firm that produces industrial enzymes and pharmaceuticals (mostly insulin). In 1977, Novo's management decided to "internationalize" its capital structure and sources...
It is difficult to sue an auditor as a third party. Required Outline three key reasons why the third party might not succeed in litigation with the auditors.
You are given the following information on a proposed cigar tax in the Republic of Panatela. Panatela collects no other specific excise taxes, and all other government revenues come from a neutral...
With the passage of the Tax Cuts and Jobs Act of 2017, the corporate tax rate was reduced from 35 percent to 21 percent beginning in 2018. Also in 2018, the Trump administration started what has been...
Find curl v for v given with respect to right-handed Cartesian coordinates. Show the details of your work. v = [2y 2 , 5x, 0]
I have created the variables noisy value and noisy sqft which have random noise added to the actual variables. Take a look at the relationship between these variables by creating a variable equal to...
Peter opened a brokerage account to sell short 1,200 shares of Carb Farm stock at the current market price of $160 per share. The brokerage firm charges 12% per annum on the margin loan. a. Suppose...
Two parallel plates 15 cm on a side are given equal and opposite charges of magnitude 5.5 x 10-9 C. The plates are 3.5 mm apart. What is the potential difference between the plates (in V)? (Enter the...
Dan Mullen is employed by a mail-order distributor and reconditions used desktop computers, broadband routers, and laser printers. Dan is paid $12 per hour, plus an extra $6 per hour for work in...
The radius of a solid conducting sphere is R = 14.0 cm and it has a uniformly distributed charge of 30.5 nC on its surface. The center of the sphere is at the origin of the xy coordinate system. The...
Could/should critical success factors in a CPM include external factors? Explain.
31. What is the income that can be received over 15 years from $500,000 earning 6% annually? 32. What is the semiannual payment required to retire $50,000 in debt over 5 years at 8% compounded...
In the current year, Plum, Inc., a closely held C corporation, has $410,000 of net active income, $20,000 of portfolio income, and a $75,000 passive activity loss. What is Plums taxable income for...
Joel is the sole shareholder of Manatee Corporation, a C corporation. Because Manatees sales have increased significantly over the last several years, Joel has determined that the corporation needs a...
White Corporation, a calendar year C corporation, manufactures plumbing fixtures. For the current year, White has taxable income [before the domestic production activities deduction (DPAD)] of...
Let country Bs SAS curve be Y = 0.5 + ( - e ), the same as country As in, while its vote function is s = 95 - 0.5 2 + 10Y. (a) By how much can B reduce its inflation bias by fixing the exchange rate...
Sam received a Section 1245 asset (heavy truck) that his grandfather used and depreciated in connection with a trade or business. At the time Sam received the truck, the FMV was $12,000, original...
1 offers a 6% annual interest rate, but charges a $1 service charge each year, including the year when the account was opened. Bank #2 offers a 5% annual interest rate, and has no annual service...

Taxes on necessities that have low demand elasticities impose large excess burdens because consumers cant avoid buying

Question:

Step by Step Answer:

The statement suggests that taxes on necessities with low demand elasticities impose large excess bu...View the full answer

Mylab Economics With Pearson Access Code For Principles Of Microeconomics

Students also viewed these Business questions