QUESTION 48 A good with a supply generates no deadweght loss when taxed a perfec

Question

QUESTION 48 A good with a supply generates no deadweght loss when taxed a perfectly elastic o b slowly increasing o c perfectly inelastic o d somewhat inelastic o e somewhat elastic QUESTION 49 A tax on producers would cause thecurvets) to shift to the a supply and demand, left b, supply and demand, right 0 c. supply; left o d demand, left o e supply, ight QUESTION 50 Some employers are wiling to provide job training for workers, However, an employer m ght require the worker to pay for the tranino when the training s a, extensive. b provided by a manager in the firm of short length o d specific to the employer e a general skill that could be used in any job for any employer Click Save and Submit to saue and submit. Cliek Save All Answers to sque all ansuers

Explanation / Answer

48) The asnwer is C-) Perfectly inelastic.

because, when the demand is perfectly inelastic , then the increase or decrease in price cause no change in quantity demanded. therefore when the tax is imposed , price will rise, but the quantity demanded will not change. hence no deadwieght loss is created.

49) THe asnwer is C-) supply, left.

because when tax is applied on producers, then the producer recieves less price than the what he was recieve before tax. therefore he will reduce the supply and thus supply curve will shif to the left.

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