Microeconomics

1) What do you think are the circumstances when a trafficker disregard pass the enough amount of an fray tax revenue revenue enhancement enhancement on to consumers? For example, do you think that the terra firma chance upon revenue enhancement income on gasoline is completely passed on to consumers in pop? If these products had an chance upon tax revenue placed on them, who would wind up gainful approximately of the tax and wherefore? A seller can only pass on the full amount of an scratch up tax to consumers if the good has a actu eithery(prenominal) in plastic demand. This is because the seller knows that an annex in price go away only minimally affect the demand. The state excise tax on gasoline in Pennsylvania, for example, is around likely passed on to consumers since gasoline has a very(prenominal) inelastic demand. Gasoline exit above. tax passed on to consumers since demand for gasoline is very inelastic. super manger ticket s Super bowl tickets would have a very elastic demand so the cost of an excise tax would be passed on to sellers.

Luxury cars Luxury cars have a very elastic demand as well, so the cost of an excise tax would be passed on to sellers. · Cigarettes Cigarettes, like gasoline, have a very inelastic demand so the cost of the excise tax would be passed on to consumers. · Bourbon If this is a tax on sightly bourbon, and thence the tax would be passed on to sellers since bourbon drinkers would most likely just switch to a cheaper kind of liquor. If this tax is on all of liquor and not just bourb on, however, then the excise tax would be pa! ssed on to consumers since liquor has aIf you insufficiency to get a full essay, order it on our website: BestEssayCheap.com

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