When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic,
a. buyers of the good will bear most of the burden of the tax.
b. sellers of the good will bear most of the burden of the tax.
c. buyers and sellers will each bear 50 percent of the burden of the tax.
d. both equilibrium price and quantity will increase.
a
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Suppose the supply of bicycles is price elastic. This means that
A) consumers will respond significantly to an increase in the quantity of bicycles supplied. B) suppliers will respond significantly to changes in the price of bicycles. C) suppliers face many substitutes for bicycles. D) suppliers will increase the quantity of bicycles supplied, but not immediately.
When expansionary policy is unanticipated, it leads to a short-run expansion in output and employment
a. True b. False Indicate whether the statement is true or false
The existence of long term leases agreements in rental markets:
A. harms landlords and benefits tenants by preventing landlords from raising the rent each month. B. solves a commitment problem that is inherent in markets with imperfect information. C. creates an informational advantage for landlords. D. benefits landlords by keeping occupancy rates high and harms tenants by reducing their mobility.
Describe and explain how a perfectly competitive firm's demand curve is found
What will be an ideal response?