If supply is perfectly inelastic, a sales tax imposed on sellers is paid by
A) only the buyers.
B) only the sellers.
C) both the buyers and sellers.
D) None of the above answers is correct.
A
You might also like to view...
"A positive economic statement is always true and a normative economic statement is always false." Do you agree or disagree with this statement? Explain
What will be an ideal response?
The vertical distance between the horizontal axis and any point on a perfect competitor's demand curve measures
A) total cost. B) total revenues. C) product price, marginal revenue, and average revenue. D) supply curve for the product.
The purchase of $1 million of Treasury securities by the Federal Reserve, if there is no change in the quantity of currency, will cause reserves at banks to
A) increase by $1 million. B) increase by less than $1 million. C) decrease by $1 million. D) decrease by less than $1 million.
Which of the following is not an advantage of starting a new business as a sole proprietorship?
A) separation of ownership and business liability B) limited control over the operation of the business C) the initial cost in setting up the business D) possibility of double taxation