If buyers pay more of a tax than do the sellers,
A) demand is more elastic than supply.
B) the amount of tax revenue collected by the government is almost zero.
C) supply is more elastic than demand.
D) the equilibrium price paid by buyers rises by less than half the amount of the tax.
E) None of the above answers is correct.
C
You might also like to view...
An economic policy has a decent chance of working as intended, if ________
A) the policy causes no change in expectations B) if mistaken expectations are not very costly C) the rationale behind the policy is well-understood by the public D) expectations are formed in the same way by both the public and the policymakers
The basic problem of economics arises when there are unlimited resources available to fulfill society's limited wants
a. True b. False
The assets of a bank include deposits, while the liabilities of a bank include loans
Indicate whether the statement is true or false
Why is it that the consumer can maximize total net utility only if the purchase quantity brings marginal utility as close as possible to equality with price?
What will be an ideal response?