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In which country will ad providers pay a smaller share of the tax? Ad providers' share of the tax burden O will be smaller in
In which country will ad providers pay a smaller share of the tax? Ad providers' share of the tax burden O will be smaller in O will be smaller in Country B. Country A. O will be about the same in both countries.Suppose the proposed tax on social media advertisements takes effect. Which course of action from a social media company like Facebook is least likely to happen in response to the tax? Assume Facebook is maximizing its short-run profits before the tax. Facebook would be least likely to O invest in new features and services to attract additional European users to its main site. lobby the European Parliament to repeal the tax. reduce development of Europe-specific data analytics for targeted marketing. O develop other services or acquire other companies that are less dependent on advertising revenue.Side-b Consider two countries where the proposed tax on online ads will be imposed. Suppose demand for online ads in Country A is more elastic than demand for online ads in Country B. Assume that the elasticity of supply is about the same for both countries. Finally, assume the price and quantity of advertisements sold in both countries are about the same initially. Which country will collect more revenue from the ad tax? Tax revenue will be O greater in Country A. O greater in Country B. O about the same in both countries
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