Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to shrink by the largest amount?
a. The response of buyers to a change in the price of bananas is strong, and the response of sellers to a change in the price of bananas is weak.
b. The response of sellers to a change in the price of bananas is strong, and the response of buyers to a change in the price of bananas is weak.
c. The response of buyers and sellers to a change in the price of bananas is strong.
d. The response of buyers and sellers to a change in the price of bananas is weak.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to shrink by ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The current logistics management approach is supported by which performance measurement concepts? a. metrics. b. total cost. c. least total cost. d. the D1 concept developed by the Supply Chain Council
Answers (1)
The table below contains data for country A for the year 2010. Household purchases of durable goods $1293 Household purchases of nondurable goods $1717 Household purchases of services $301 Household purchases of new housing $704 Purchases of capital
Answers (1)
Discuss whether or not the below listed actions are tax avoidance or tax evasion. Then, discuss the ethical implications of employing each of these in a tax return.
Answers (1)
A product is considered to be rivalrous if A) Your consumption of the product reduces the quantity available for others to consume. B) It is jointly owned by all members of a community.
Answers (1)
Tenderfoot company uses a job costing system. The work in process inventory on December 31, 2012 consisted of Job No. 175. This job had been charged with direct materials of $17,400 and direct labor of $20,000.
Answers (1)
New Questions in Business
What is the best course of action to remove autorun for removable disks and cd drives in windows?
Answers (1)
A plane leaves Seattle, flies 85 miles at 30o north of east, and then changes direction to 45o south of east. After flying 115 miles in this new direction, the pilot must make an emergency landing in a field.
Answers (1)
Companies like hewlett-packard and frito-lay routinely monitor blogs to gain insight into
Answers (1)
Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January: Issued 10,000 shares of common stock for $15,000 cash. Purchased land for $12,000, signing a note payable for the full amount.
Answers (1)
If the selling price per unit is $42, the unit contribution margin is $15, and total fixed expenses are $570,000, what will the breakeven sales in units be? Group of answer choices 13,571 38,000 8,550,000 21,111
Answers (1)