Select the correct statement regarding commodity (or excise) taxes. the reduction in consumer and producer surplus associated with a commodity tax is equivalent to the tax revenue collected. the burden of a tax is unrelated to who actually pays money to the government. regardless of who writes a check to the government, the burden of commodity taxes is shared equally by buyers and sellers. from the perspective of buyers, taxes imposed on firms are preferable to taxes imposed on buyers, because firms ultimately pay a larger share of these types of taxes. select the correct statement regarding tax wedges. tax wedges are smaller when commodity taxes are imposed on buyers. the size of the tax wedge is unrelated to elasticity. tax wedges are larger when commodity taxes are imposed on buyers. tax wedges are larger when supply is more inelastic than demand. tax wedges are larger when demand is more inelastic than supply.

John and daphne are saving for their daughter ellen's college education. ellen just turned 10 at (t = 0), and she will be entering college 8 years from now (at t = 8). college tuition and expenses at state u. are currently $14,500 a year, but they are expected to increase at a rate of 3.5% a year. ellen should graduate in 4 years--if she takes longer or wants to go to graduate school, she will be on her own. tuition and other costs will be due at the beginning of each school year (at t = 8, 9, 10, and 11).so far, john and daphne have accumulated $15,000 in their college savings account (at t = 0). their long-run financial plan is to add an additional $5,000 in each of the next 4 years (at t = 1, 2, 3, and 4). then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. they expect their investment account to earn 9%. how large must the annual payments at t = 5, 6, and 7 be to cover ellen's anticipated college costs? a. $1,965.21b. $2,068.64c. $2,177.51d. $2,292.12e. $2,412.76