Figure 4-22
Refer to . Buyers pay how much of the tax per unit?
a.
$1.00.
b.
$1.50.
c.
$2.50.
d.
$3.00.
a
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The price elasticity of cigarettes has been estimated as -0.5. The government has decided that they want to decrease the amount that people in the United States smoke by 10%. It follows that they must institute measures that would raise the price of cigarettes by
a. 5% b. 10% c. 15% d. 20%
In the figure above, what is Gap's markup?
A) $50 B) $15 C) $35 D) zero
Nonprice rationing devices are required
A) because the price system does not allocate resources efficiently. B) when there are price floors but not when there are price ceilings. C) so that prices will go back to equilibrium. D) to allocate goods when there is a price ceiling.
In order for a bank to earn as much profit as possible, its excess reserves should be:
a. equal to its required reserves. b. as small as possible. c. less than its vault cash. d. growing at a constant rate.