The primary purpose of a quota system is to: decrease paid by consumers, increas

Question

The primary purpose of a quota system is to: decrease paid by consumers, increase the price received by producers, generate tax revenue for the government, or all of the above?

if the government wanted to use a food tax in order to significantly reduce the quantity of sweet and sugary drinks we consume, this could be accomploshed with a relatively small food tax on these drinks if:  demand was elastic, demand was inelastic, income elasticty was large, or income elasticity was small?

if the government imposes a new per unit tax, the tax revenues collected by the government will be greater if demand is elastic if it is inelastic?  true or false

if a quota is set than equilibrium quantity, then there will be no impact on the impact?  ture or false?

Explanation / Answer

.The primary purpose of a quota system is to:"all the above"

.if the government wanted to use a food tax in order to significantly reduce the quantity of sweet and sugary drinks we consume, this could be accomploshed with a relatively small food tax on these drinks if:"demand was elastic"

.if the government imposes a new per unit tax, the tax revenues collected by the government will be greater if demand is elastic if it is inelastic? " false"

.if a quota is set than equilibrium quantity, then there will be no impact on the impact? "false"

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