The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. The amount of the tax paid by the buyers would be greater than shown in the figure
A) only if the demand was more elastic.
B) only if the demand was more inelastic.
C) only if the supply was more elastic.
D) if either the demand was more inelastic or the supply more elastic.
D
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In the long run, a competitive firm will earn zero economic profit
a. True b. False Indicate whether the statement is true or false
Suppose the government decides that milk producers are not earning a high enough price for their milk to maintain an adequate standard of living and that the solution to the problem is to guarantee the milk producers a minimum price. We would expect that
A) consumers will have to pay a higher price per gallon of milk and will not be able to consume as much as they did before. B) the government will have to purchase the surplus milk on the market and then find a means of storing this milk. C) the dairy farmers will enjoy a higher standard of living at the expense of taxpayers and consumers. D) all of the above
The strike price of an option is determined by the market.
a. true b. false
Table 5.2National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$2,850Exports$300Government purchases of goods and services$810Social Security taxes$295Net investment$510Indirect business taxes$445Imports$450Gross investment$700Corporate income taxes$190Personal income taxes$875Corporate retained earnings$210Net foreign factor income$0Government transfer payments to households$780Net interest payments to households$20On the basis of Table 5.2, depreciation is
A. $190 billion. B. $425 billion. C. $125 billion. D. -$125 billion.