The government proposes a tax on flowers in order to boost its revenue. Consumers will bear no part of this tax if the:
a. demand for flowers is perfectly inelastic.
b. supply of flowers is perfectly elastic
c. demand for flowers is perfectly elastic.
d. demand for flowers is unit elastic.
c
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The marginal expenditure of a monopsonist is $4. The wage it currently pays is $3. The labor supply curve has a constant elasticity. What is the elasticity of the labor supply?
A) 0.33 B) 0.66 C) 1 D) 3
If Mary invests $500 and receives yearly interest of $40, the rate of interest she is earning on her $500 must be
a. 18 percent b. 12.5 percent c. 10 percent d. 15 percent e. 8 percent
Paying into a pension fund while you are earning wages and salaries is equivalent to
a. borrowing money. b. lending money. c. withdrawing from a savings account. d. paying off debt.
Compared to the distribution of money income, the distribution of wealth is
A) about the same. B) much more equal. C) much less equal. D) a little more equal.