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29 Nov 2019
In a transaction for a good valued at $100,000 by a buyer and $95,000 by a seller, what
amount of tax would result in an unconsummated transaction?
a. Any tax amount would result in an unconsummated transaction.
b. A tax of $1,500
c. A tax of $5,500
d. It depends on how much the parties are willing to pay (and accept) for the good.
In a transaction for a good valued at $100,000 by a buyer and $95,000 by a seller, what
amount of tax would result in an unconsummated transaction?
a. Any tax amount would result in an unconsummated transaction.
b. A tax of $1,500
c. A tax of $5,500
d. It depends on how much the parties are willing to pay (and accept) for the good.
21 Feb 2022
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Jarrod RobelLv2
17 Dec 2019
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| We'll use the example of an experiment like yours, but with slightly different numbers of buyers and sellers. In our example, there are 10 buyers and 10 sellers. Each of the buyers is willing to pay $100 for a high-quality MP3 player and $65 for a low-quality player. Each of the sellers can choose to produce high-quality players at a cost of $85 each or low-quality players at a cost of $55 each. |
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