Question:
Consider a competitive market:
Suppose per unit commodity tax is imposed on the sellers,
A. a tax on the commodity creates a wedge between the price the buyers pay and the price which sellers receive.
B. post tax equilibrium quantity increases.
C. if the supply is more elastic than demand then the tax burden falls more heavily on buyers.
D. if the demand is more elastic than supply then the tax burden falls more heavily on buyers.
E. imposition of the tax creates dead weight loss.
Choose the most appropriate answer from the options given below:
Consider a competitive market:
Suppose per unit commodity tax is imposed on the sellers,
A. a tax on the commodity creates a wedge between the price the buyers pay and the price which sellers receive.
B. post tax equilibrium quantity increases.
C. if the supply is more elastic than demand then the tax burden falls more heavily on buyers.
D. if the demand is more elastic than supply then the tax burden falls more heavily on buyers.
E. imposition of the tax creates dead weight loss.
Choose the most appropriate answer from the options given below:
Suppose per unit commodity tax is imposed on the sellers,
A. a tax on the commodity creates a wedge between the price the buyers pay and the price which sellers receive.
B. post tax equilibrium quantity increases.
C. if the supply is more elastic than demand then the tax burden falls more heavily on buyers.
D. if the demand is more elastic than supply then the tax burden falls more heavily on buyers.
E. imposition of the tax creates dead weight loss.
Choose the most appropriate answer from the options given below:
Updated On: Mar 10, 2024
- A and C only
- C and E only
- A, C, E only
- B and E only
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
The correct answer is (C) : A, C, E only.
Was this answer helpful?
0
0
Top Questions on Tax
- Distinguish between Direct tax and Indirect tax with suitable examples.
- "Under the 'Production Linked Incentive' scheme, the Government of India offers various benefits like reduced importexport duties, incentives to investors, taxrebates etc." In the light of the above statement, identify and explain the Budget objective and its likely consequences.
- A decrease in the income tax rate has a ________ effect on the labour supply if the ________ effect dominates.
- In an economy, the dependency ratio is the ratio of
- Which one of the following is NOT a source of finance of the Government of India ?
View More Questions
Questions Asked in CUET PG exam
- What is the correct verb form: He, as well as his friends, ?
- Which preposition is correct: Chanakya lived ?
- CUET (PG) - 2025
- Prepositions
- Identify the possessive noun: My office car is parked elsewhere.
- Which tense is appropriate: How did Saira ?
- Complete the sentence: There is a growing synthesis between humanism and ?
- CUET (PG) - 2025
- Sentence Completion
View More Questions