Sellers to pass along tax

Related BrainMass Solutions

• Price elastcity and burden of sales tax

  Consumers can easily pass the burden of sales tax to seller as they will be getting supply as lower prices also.

• Basic elasticity concepts

  d.supply of vegetables had shifted in along an inelastic demand curve. 3.Given the same price elasticity of supply, sellers would be able to pass along the largest portion of a 10% tax on which of the following items?

• Lease payments - Lollar Corporation

  If the Lollar Corporation is able to generate $120,000 in immediate tax shield benefits from the asset to be purchased for the lease arrangement and will pass the benefits along to the Pierce Corporation in the form of lower lease payments, how much should

• supply curve shifts

  The supply curve shifts upward by less than the amount of the tax.. If the suppliers absorb some tax and do not pass on the entire tax burden to the customer, the shift will be less than the amount of tax. 2.

• government intervention on efficiency grounds

  Producers cannot make them easily or cheaply, so they must pass these costs along to the customer. Thus the market allocates goods efficiently - those that are important but scarce are more expensive, signaling buyers to use them carefully.

• Excise tax - supply curve

  19340 Excise tax - supply curve The government levies an excise tax of 5 cents per unit sold on the sellers in a competitive industry. Both supply and demand curves have some elasticity with respect to price.

• Price Ceiling or Price Floor

  Because people desire these apartments, which are few in number, they tend to pass them along to friends and family members. Befriending people just because of their apartment is common practice.

• Public Finance and Taxes

  A 10-percent tax is levied on the sale of soft drinks. This tax is collected from the sellers of the drinks. A critic of the tax argues that the sellers will shift the entire tax to the buyers and therefore be no worse off.

• Taxing consumables

  d. there is a movement downward and to the right along the demand curve for cigarettes. 6. Suppose a tax is levied on the buyers of a good; a. then the supply curve shifts upward by the amount of the tax.