When a tax is placed on the buyers of a product, buyers payGroup of answer choicesmore and sellers receive more than they did before the tax.more and sellers receive less than they did before the tax.less and sellers receive more than they did before the tax.less and sellers receive less than they did before the tax.

If a tax is physically paid by sellers, then sellers bear the full 100% burden of the tax. Group of answer choicesTrueFalse

After a tax, the price producers receive for the product is equal to: a. Above the original equilibrium price b. None of the above c. The original equilibrium price d. Below the original equilibrium price

Sales taxes collected by a retailer are expensesGroup of answer choicesthat are not recognized by the retailer until they are submitted to the government.of the government.of the customers.of the retailer.

Assume that demand is perfectly elastic and supply is upward sloping. If a specific tax is imposed on sellers then following the imposition of the tax:Group of answer choicesProducer surplus is equal to zero.Consumer surplus is equal to zero.The total price paid by buyers will increase.The price received and kept by sellers remains unchanged.b, c and d are correct.

Sales taxes collected by a retailer are reported asGroup of answer choicescurrent liabilities.expenses.contingent liabilities.revenues.