--%>

Decrease the burden of sales tax on low income

To decrease the burden of a sales tax upon low income households, in that case: (i) goods along with high income elasticities should be taxed. (ii) goods along with low income elasticities should be taxed. (iii) goods along with high income elasticities must be exempt from the tax. (iv) inferior goods must be taxed. (v) tobacco and liquor must be taxed.

I need a good answer on the topic of Economics problems. Please give me your suggestion for the same by using above options.

   Related Questions in Microeconomics

  • Q : Demand when oligopolistic firm

    When an oligopolistic firm increases its price, in that case the demand this faces will be: (1) more elastic if the other firms in the industry raise their prices. (2) less elastic when no other firms in the industry raise their prices. (3) more elast

  • Q : Dilemma on labor monopsonist The labor

    The labor monopsonist will hire labor up to the point where the marginal: (i) Revenue product of the labor equivalents the wage. (ii) Resource cost of labor equivalents the salary. (iii) Revenue product of labor equivalents its marginal resource cost. (iv) Resource co

  • Q : Substitution Effect-decreasing

    The substitution effect is negative since people react to a price raise by: (i) Reducing purchases of good. (ii) Generating more of good. (iii) Purchasing some substitute goods. (iv) Working less to sustain the existing purchasing patterns.

    Q : Problem on financial Intermediation The

    The main reason for the existence of financial intermediaries is as: (1) Direct flows of savings from the individuals to firms would necessitate higher transaction costs. (2) That just wealthy individuals can afford to invest in the stocks and bonds. (3) The habits of

  • Q : Lower price results in higher product

    When lower price outcomes in higher bread sales, this points out an: (i) Raise in the quantity of bread demanded. (ii) Raise in the quantity of bread supplied. (iii) Exception to the law of demand. (iv) Raised taste for bread. Can

  • Q : Adjust production in profit-maximizing

    Adjust production in all profit-maximizing firms to a level where the marginal: (i) revenue most greatly exceeds average total cost. (ii) revenue curve is at its maximum height. (iii) cost curve is at its lowest point. (iv) cost curve intersects the m

  • Q : Purely competition on the average This

    This purely competitive brickyard as in below graph on the average experiences an: (w) economic profit of about $135 per day. (x) economic loss of roughly $150 per day. (y) accounting profit of less than $100 per day. (z) accounting loss of more than

  • Q : Profit-maximizing decision to operate

    Babble-On maintains world-wide patents for software which translates any of three-hundred-thirteen spoken languages within text, along with automatic audio and text translations within any of the other three-hundred-thirteen languages. Babble-On's profit-maxim

  • Q : Average standard of living in Africa

    Elucidate briefly the average standard of living in Africa?

  • Q : Price floors with government purchases

    Suppose the U.S. wheat market is primarily in a stable equilibrium upon S0D0. Assume now that the government institutes a legal price floor at P3 per bushel of wheat. When the government will buy and store any resulting surplus