More of a tax is borne by firms:
A. the more elastic is demand and the less elastic is supply.
B. the less elastic is demand and the less elastic is supply.
C. the more elastic is demand and the more elastic is supply.
D. the less elastic is demand and the more elastic is supply.
A. the more elastic is demand and the less elastic is supply.
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The idea that business fluctuations are primarily caused by factors affecting aggregate supply rather than aggregate demand is a central tenet of
A. efficiency wage theory. B. mainstream economics. C. real business cycle theory. D. monetarism.
As a firm moves to higher isocost lines
A) its input price ratio increases. B) its profits increase. C) its total cost increases. D) its revenue increases.
While rent subsidies have some disadvantages, one advantage of rent subsidies is _____
a. administrative costs are low b. there is little chance of fraud c. the renter can chose from among different housing qualities d. renters have a strong incentive to shop carefully
Under the conditions of monopolistic competition:
A. firm profits are higher in the long run than in the short run. B. average costs of production are the same in the short run as they are in the long run. C. economic profit is zero in the long run. D. price equals marginal cost.