The more elastic the supply of a product, the more likely it is that the
a. burden of a tax on the product will fall on sellers.
b. burden of a tax on the product will fall on buyers.
c. burden of a tax on the product will fall equally on both buyers and sellers.
d. deadweight loss of the tax will be smaller.
B
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Refer to the scenario above. Which of the following would have happened if the government had decided to provide an export subsidy on these cash crops?
A) The volume of exports would have decreased. B) The government's revenue would have increased. C) Domestic producers would have been better off. D) Domestic consumers would have been worse off.
A duopolist faces the entire market demand for its product if ________
A) it charges a lower price than its rival B) it charges a higher price than its rival C) it charges the same price as its rival D) it charges a price higher than its cost of production
In an open economy, an increase in foreign output would cause the IS curve to shift ________ and a decrease in the foreign real interest rate would cause the IS curve to shift ________.
A. down; down B. down; up C. up; up D. up; down
If the price is below the equilibrium price,
A) there is a surplus. B) there is a shortage. C) the supply curve will shift rightward. D) the supply curve will shift leftward. E) the demand curve will shift leftward.