A monopoly always operates on the elastic portion of its demand curve
Indicate whether the statement is true or false
TRUE
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The demand for fish today decreases if there are expectations that the price of fish may increase in the future
Indicate whether the statement is true or false
If an excise tax is placed on a product that has a price elasticity of demand equal to zero, then the
a. entire tax will be paid by the consumer b. entire tax will be paid by the producer c. consumer and producer will each pay a share of the tax d. incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply e. tax is progressive
The Tragedy of the Commons occurs because
a. government property is most heavily used by the wealthy. b. everyone deserves an equal share of government property. c. social and private incentives differ. d. established property rights create competition.
Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP. Keynesians might advise a policy of tax __________ to shift __________
A) increases; SRAS to the left B) increases; AD to the left C) cuts; SRAS to the right D) cuts; AD to the right