The demand for apple pies is perfectly elastic. If the government taxes apple pies at $1 a pie, then
A) the seller pays the entire tax.
B) the buyer pays the entire tax.
C) the seller and the buyer split the tax evenly.
D) the seller and the buyer split the tax but the seller pays more.
E) who pays the tax depends on whether the government imposes the tax on pie buyers or on pie sellers.
A
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Both successful market-processes ?and central planning rely on self-interested behavior.
Answer the following statement true (T) or false (F)
Which of the following will NOT cause the public debt to change?
A) collection by the government of $200 billion more in taxes than it spends B) government budget deficit C) government budget surplus D) balanced budget
A good is classified as inferior if:
a. consumers buy less when the price rises. b. consumers buy less when income rises. c. consumers buy less when the price falls. d. consumers buy more when income rises. e. better quality goods exist.
An increase in the price level or in the real GDP, with velocity stable, shifts the :
a. money demand curve leftward. b. money supply curve leftward. c. money demand curve rightward. d. money supply curve rightward.