When a tax is levied on sellers of tea,
a. the well-being of both sellers and buyers of tea is unaffected.
b. sellers of tea are made worse off, and the well-being of buyers is unaffected.
c. sellers of tea are made worse off, and buyers of tea are made better off.
d. both sellers and buyers of tea are made worse off.
d
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Explain the effect of price elasticities of supply and demand on tax incidence
What will be an ideal response?
A dominant strategy:
A. exists in every game. B. is the best one to follow no matter what strategy other players choose. C. is always the same for all players of a game. D. awards the highest achievable payoff in a game.
Refer to Table 3.1 to answer the following questionTable 3.1 Individual Demand and Supply SchedulesQuantity Demanded byPriceAlejandroBenCarlMarket$8.00842________6.001244________4.002046________2.002246________Quantity Supplied byPriceAveryBrandonCassandra $8.006046________$6.004244________$4.002442________$2.00640________In Table 3.1, the equilibrium market price is
A. $2. B. $4. C. $6. D. $8.
An open market purchase by the Fed causes the value of the dollar to:
A. rise, increasing net exports. B. rise, reducing net exports. C. fall, increasing net exports. D. fall, reducing net exports.