Select the correct statement regarding tax wedges. Tax wedges are larger when demand is more inelastic than supply. Tax wedges are larger when supply is more inelastic than demand. 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.

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.