The demand for insulin is quite inelastic. The demand for Pepsi is quite elastic. Suppose the elasticity of supply for insulin is the same as the elasticity of supply for Pepsi
If a $0.20 tax was imposed on each of these goods (holding everything else constant), which consumers would pay more of the tax?
A) the Pepsi consumers
B) the insulin consumers
C) There would be no difference in the amount of tax paid by the consumers.
D) More information is needed to determine which consumers pay more of the tax.
E) The premise of the question is wrong because the elasticity of demand and the incidence of a tax are not related.
B
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An increase in ________ leads to an equal ________ in the monetary base in the short run
A) float; decrease B) float; increase C) discount loans; decrease D) Treasury deposits at the Fed; increase
A tendency for a good to come into favor with consumers because other consumers have chosen to buy the item is
A) price-leadership. B) negative-sum game. C) positive market feedback. D) negative market feedback.
Refer to the above table. What does the marginal revenue product equal when 28 workers are hired a week?
A) $1040 B) $900 C) $210 D) $7.50
Which of the following statements is true?
a. Disinflation is an increase in the rate of inflation. b. Real income is the actual number of dollars received over a period of time. c. The consumer price index (CPI) measures changes in the average prices of consumer goods and services. d. Deflation is an increase in the general level of prices.