1. Suppose the government imposes an excise tax on a good. If the elasticity of supply is 1.86 and the elasticity of demand is -1.32, which party will bear the burden of the tax?

Group of answer choices

Both parties, but buyers will bear a greater burden.

Buyers will bear the entire burden.

Both parties will bear the burden equally.

Sellers will bear the entire burden.

Both parties, but sellers will bear a greater burden.

2. Match each policy goal with the appropriate government intervention:

Group of answer choices

Increase the price of a good

[ Choose ] Price Floor Price Ceiling Subsidy Tax

Redistribute surplus to help consumers

[ Choose ] Price Floor Price Ceiling Subsidy Tax

Increase consumption of a good

[ Choose ] Price Floor Price Ceiling Subsidy Tax

Decrease the price of a good

[ Choose ] Price Floor Price Ceiling Subsidy Tax

Raise revenue

[ Choose ] Price Floor Price Ceiling Subsidy Tax

Redistribute surplus to help producers

[ Choose ] Price Floor Price Ceiling Subsidy Tax

Decrease consumption of a good

[ Choose ] Price Floor Price Ceiling Subsidy Tax

Increase production of a good

[ Choose ] Price Floor Price Ceiling Subsidy Tax