The demand for bus service is perfectly elastic at a price of $1.25 a ride. The table above shows the bus company's marginal cost and the marginal social cost of the bus service
If the government levies a tax on bus rides so that the bus company takes into account the marginal social cost, the tax will be ________ a ride. A) $0.75
B) $1.60
C) $1.25
D) $3.25
A
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Sensitivity analysis is restricted to natural sciences.
Answer the following statement true (T) or false (F)
In Figure 20.1, at what price is the elasticity of demand unitary?
A. $200. B. $160. C. $100. D. $40.
Why is efficiency desirable?
A. It is the most politically popular solution. B. It results in the highest prices for the goods and services produced. C. It makes best use of the available resources. D. It results in an equal distribution of income.
Throughout the developing world, teacher absenteeism
A. is much lower than it is in developed nations. B. has a much smaller impact on education than does student absenteeism. C. is a problem that affects education. D. is virtually unheard of.