Suppose the supply of diamonds is relatively inelastic. A tax on diamonds would generate a
a. large DWL and the burden of a tax would fall on the buyer of diamonds.
b. small DWL and the burden of a tax would fall on the buyer of diamonds.
c. large DWL and the burden of a tax would fall on the seller of diamonds.
d. small DWL and the burden of a tax would fall on the seller of diamonds.
d. small DWL and the burden of a tax would fall on the seller of diamonds.
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If the demand for a monopoly's output shifts leftward, the change in quantity produced is NOT predictable because
A) the monopoly is a profit maximizer. B) the monopoly is a price taker. C) the monopoly has no supply curve. D) the monopoly's marginal cost curve might not be upward sloping.
Which of the following is NOT a component of the equation of exchange?
A. The price level B. The interest rate C. Real output D. The velocity of money
The demand curve for a monopolist is
A. the industry demand curve. B. the same as the demand curve for a perfectly competitive firm. C. a unitary elastic demand curve. D. a perfectly inelastic demand curve.
Which of the following describes the difference between the market demand curve for a perfectly competitive industry and the demand curve for a firm in this industry?
A) The market demand curve is downward sloping; the firm's demand curve is a vertical line. B) The market demand curve is downward sloping; the firm's demand curve is a horizontal line. C) The market demand curve is a horizontal line; the firm's demand curve is downward sloping. D) The market demand curve can not have a constant slope; the firm's demand curve has a slope equal to zero.