A tax on the buyers of cameras encourages
a. sellers to supply a smaller quantity at every price.
b. buyers to demand a smaller quantity at every price.
c. sellers to supply a larger quantity at every price.
d. Both a) and b) are correct.
b
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In a competitive industry, the competitive firm's profits are
a. independent of the industry in which they compete b. closely linked to the industry in which they compete c. determined only by their own differentiated product d. determined solely by the inelastic demand for their product
If advertising decreases the elasticity of demand for specific brand names of hard liquor, we would expect firms to be able to charge a larger markup over marginal cost
a. True b. False Indicate whether the statement is true or false
It is claimed that a secondary advantage of mutual funds is that
a. an investor can avoid investment charges and fees. b. they give ordinary people access to loanable funds for investing. c. they usually outperform stock market indexes. d. they give ordinary people access to the skills of professional money managers.
To practice long-run price discrimination, a monopolist must:
A. charge one price to all buyers. B. permit the resale of the product by the original buyers. C. be a natural monopoly. D. be able to separate buyers into different markets with different price elasticities.