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Sagot :
The price paid by boat buyers would increase by less than $1,000 if the government imposed a $1,000 tax per boat on boat dealers.
What is meant by elasticity?
Elasticity is the capacity of a distorted material body to regain its initial dimensions upon removal of the forces that caused the distortion. This capability is referred to as elastic behaviour (or response) in a body. When anything is stretched or squeezed, it can regain its original shape thanks to its elastic properties. A rubber, for instance, can quickly restore its shape after being stretched out significantly. Demand elasticity, income elasticity, cross elasticity, and price elasticity are the four different types of elasticity.
This is due to the fact that boats are a luxury commodity with a high elasticity of demand since they are susceptible to price changes. The seller will be responsible for paying the majority of the tax when it is applied on a good with an inflated price.
Any attempt to shift all of the responsibility to the buyers will significantly lower the quantity demanded and subsequently the seller's profit. In order to avoid this, the price will increase by less than the tax and the supplier will pass a smaller tax burden onto the purchasers.
Therefore, the price paid by boat buyers would increase by less than $1,000 if the government imposed a $1,000 tax per boat on boat dealers.
To learn more about elasticity refer to:
https://brainly.com/question/6791468
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