QUESTIONS:

The excess burden of a tax is the that results from it. xpi O A. decrease in consumer surplus keep O B. loss of government revenue when demand is elastic O C. decrease in producer surplus O D. deadweight lossIf the price elasticity of supply for a good is 0.75, then O A. the supply is elastic. O B. the supply is inelastic so the demand must also be inelastic. O C. an increase in the price boosts the quantity supplied by a larger percentage. O D. the percentage change in the quantity supplied is less than the percentage change in price. O E. None of the above answers is correct.Suppose the elasticity of supply of land is 0 and elasticity of demand is 2. If the government imposes a 10 percent tax on land, then kpi O A. sellers pay a smaller share of the tax than do buyers but both buyers and sellers pay some of the tax. keep O B. sellers pay all of the tax. O C. buyers pay all of the tax. O D. buyers and sellers each pay 5 percent of the tax. O E. buyers pay 1/2 of the tax. nd upIf the domand for a good is elastic, then O A. pooplo substantially decrease the quantity of the good they buy if its price increases by a small percentage. C B. people do not change the quantity they domand when the price of the good changes. O C. a change in the quantity demanded is smaller than the change in price. : D. a change in price leads to a smaller percentage change in the quantity demanded. Q E. the quantity demanded divided by the price excoods 1.00,One winter recently, the price of gasoline Increased by 10 percent and the quantity demanded decreased by 8 percent. Use the total revenue test to determine whether the demand for gasoline is elastic or inclastic. Total revenue because the percentage increase in the price is than the percentage decrease in the quantity demanded D A. Increases, greater O'B. docreases; greater O C. Increases, loss O D. docreases; loss O E does not change; greator Because total revenue and the price change in the demand for gasoline is Q) A. the same direction; unit clastic O B. the same direction, inclastic Q C. the same direction; plastic @ D. opposite directions, plastic O E. opposite directions; inelastic