The ratio of the burden of the tax borne by demanders to the burden of the tax borne by suppliers will be equal to_____
a. the square of the slope of the demand curve
b. the elasticity of demand times the elasticity of supply
c. the ratio of the absolute values of the slopes of the demand curve and the supply curve
d. the sum of the elasticities of the inverse demand curve and the supply curve
c
You might also like to view...
A tariff is a
A. tax. B. price ceiling. C. subsidy. D. quantity limit.
A rational decision maker takes an action only if the
a. marginal benefit is less than the marginal cost. b. marginal benefit is greater than the marginal cost. c. average benefit is greater than the average cost. d. marginal benefit is greater than both the average cost and the marginal cost.
Suppose that the income elasticity of demand for frozen dinners is negative. Other things being equal, which of the following statements is INCORRECT?
A. Frozen dinners are an inferior good. B. The quantity demanded of frozen dinners increases as a consumer's income declines. C. There exists a negative relationship between income and the demand for frozen dinners. D. The share of income spent on frozen dinners must decrease as a consumer's income decreases.
Whites are about equally divided over the cause for black poverty being racial inferiority or discrimination
Indicate whether the statement is true or false