Given the slope of a supply curve, if a demand curve becomes more price elastic:
A. the share of a tax consumers pay becomes smaller.
B. the share of a tax consumers pay becomes greater.
C. consumers pay the entire amount of a tax.
D. There is not sufficient information.
Answer: A
You might also like to view...
Which of the following is correct when a price floor is set above the equilibrium price?
a. quantity supplied is less than quantity demanded at the set price b. quantity supplied is equal to quantity demanded at the set price c. at the set price there will be a shortage d. The market price is greater than the price floor e. quantity supplied exceeds quantity demanded at the set price
Discuss the relation between average variable cost (AVC) and marginal cost (MC) curves
In what ways is GDP a misleading measure of economic performance? Consider what components are not included on GDP.
What will be an ideal response?
Economist B says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap. Government should either raise its __________ or cut _________________. I believe the tax multiplier is larger than the government spending multiplier, so I suggest government ___________________
A) taxes; spending; cut taxes B) spending; taxes; cut taxes C) taxes; spending; raise spending D) spending; taxes; raise spending E) none of the above