How might tax incidence differ in the short and long run

Assignment Help Business Economics

Reference no: EM131090323

In a market with free entry and exit, who bears the burden of a tax? Given this fact, how might tax incidence differ in the short and long run? [HINT: Recall how the market supply curve looks like when there is free entry and exit]

Reference no: EM131090323

Questions Cloud

Consumer goods and capital goods : Suppose the economy produces only 2 goods: consumer goods and capital goods (K). Also suppose the economy is operating at full employment. Finally, suppose consumer goods are subject to legal price controls (price ceiling). Use a PPF to show the econ..

Amnesty program affect the flow of future border crossings : Why do you think so many state and local governments are greatly concerned about the Federal government’s allegedly lax enforcement of the immigration laws and congressional proposals to grant legal status (amnesty) to the 12 million illegal immigran..

In general a production possibilities curve : Which one of the following statements is not accurate? In general a production possibilities curve:

Would simply change the quantity demanded : One of the more confusing topics in economics is the difference between consumer demand and the quantity demanded. Consumer demand is the entire schedule for the demand of a good for all consumers at every price, typically represented by a downwards ..

How might tax incidence differ in the short and long run : In a market with free entry and exit, who bears the burden of a tax? Given this fact, how might tax incidence differ in the short and long run? [HINT: Recall how the market supply curve looks like when there is free entry and exit]

Supply management fit into methods for calculating gdp : GDP matters. Investors and business leaders are always anxious to get the latest numbers. When the Bureau of Economic Analysis releases its first estimate of each quarter's GDP, normally on the 27th or 28th day of the month after the quarter ends, it..

Individuals ought to consume additional units of goods : Individuals ought to consume additional units of goods and services if their marginal: A. cost exceeds its marginal benefit. B. benefit is still positive. C. cost equals its marginal benefit. D. benefit exceeds its marginal cost.

Designed to promote competition-improve market efficiency : In principle, the antitrust laws are designed to promote competition and improve market efficiency. Given the work by Williamson (1968) and Demsetz (1973), explain why these laws may promote static efficient but fail to promote dynamic efficiency.

User Account

All Pages