Refer to Scenario 18.1. It would be acceptable to both parties to have the fishermen pay the factory
A) $0 to install a filter.
B) $500 to install a filter.
C) $4,000 to install a filter.
D) $6,000 to install a filter.
E) any amount greater than $4,000 and less than $6,000 to install the filter and make both parties better off.
E
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The percentage of the burden of an excise tax that is borne by sellers generally depends on the
a. size of the tax. b. relationship between the elasticity of demand and the elasticity of supply. c. elasticity of demand. d. elasticity of supply.
Pat calculates that for every extra dollar she earns, she owes the government 40 cents. Her total income now is $44,000 . on which she pays taxes of $11,000 . Determine her average tax rate and her marginal tax rate
a. Her average tax rate is 40 percent and her marginal tax rate is 25 percent. b. Her average tax rate is 40 percent and her marginal tax rate is 40 percent. c. Her average tax rate is 25 percent and her marginal tax rate is 25 percent. d. Her average tax rate is 25 percent and her marginal tax rate is 40 percent.