Suppose a tax on sellers has been imposed in the graph shown. Once the tax is in place, the buyers purchase ____ units and pay ____ for each one.
A. 15; $16
B. 15; $6
C. 31; $9
D. 31; $19
A. 15; $16
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Price discrimination by a monopolist is less effective if the
A) good can be resold. B) good has no substitutes. C) monopolist can identify buyers by willingness to pay. D) good cannot be resold.
Natural oligopolies occur when
a. the government establishes a market with a few large producers b. the market output could be produced at a higher cost by several large firms rather than many small firms c. there are no barriers to entry d. the total market output could be produced at a lower cost by several large firms rather than many small firms e. one large firm can produce the total market output at a lower cost than several smaller firms could
Which of the following is not used as a trade protection practice?
a. tariff b. quotas c. safety standards d. foreign-owned domestic production e. nontariff barriers
Refer to Figure 20.2. If the area 0P1AB is less than the area 0P2CD, we can conclude that the price elasticity of demand between point A and point C is
A. Elastic. B. Unitary elastic. C. Inelastic. D. Impossible to determine. It depends on whether the price has increased or decreased.