1.Consider a tax on a good known as Basas. If the tax is changed from being on the sellers to being on the buyers, what is the effect on the tax burden?

Group of answer choices

Buyers will now pay more of the tax

Sellers will now pay more of the tax

Government will now pay more of the tax

No effect

Unclear

2.Think about the market for parking spaces in downtown LA. There is some but not a lot of flexibility in terms of changing the number of parking spaces provided. On the other hand, there are many substitutes for parking in the city such as taking the train or parking just outside the city and taking a bus.

If a tax is applied on parking spaces, what happens to the quantity?

Group of answer choices

Decreases

Increases

Increases then decreases then increases

No effect

Unclear

3.Again, think about the market for parking spaces in downtown LA discussed in the previous problem.

Who pays most of the tax burden?

Group of answer choices

Buyers

Sellers

Government

Your instructor Wesley O.

Unclear

4.Recall the product of gas which we said was inelastic. Suppose more and more alternatives to gas become available to consumers to power their cars.

In terms of a gas tax, this increase in alternatives would mean less of the tax burden would fall on the buyers.

Group of answer choices

True

False

5.Suppose the income elasticity of demand for food is 0.4. If people's incomes rise by 12.5%, what happens to the quantity demanded for food?

Group of answer choices

Increases by 1.5%

Increases by 5%

Increases by 7.5%

Increases by 12.5%

Increases by 31.25%