If the government eliminates a tax on a good with a perfectly elastic supply, who benefits most?
A) buyers
B) sellers
C) buyers if the demand is also perfectly elastic, otherwise sellers
D) buyers if the demand is unit elastic, otherwise sellers
E) Buyers and sellers benefit equally.
A
You might also like to view...
Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis. As a country moves along the frontier closer to the vertical axis,
A) the opportunity cost of producing jeans decreases. B) inefficient production occurs. C) the opportunity cost of producing jeans increases. D) there are fewer tradeoffs. E) the opportunity cost of producing shoes increases.
U.S. GDP excludes underground activities
Indicate whether the statement is true or false
Two variables are said to be ________ if they move together
A) procyclical B) spurious C) correlated D) co-dependent
Suppose that a perfectly competitive industry becomes a monopoly. What effect will this have on consumer surplus, producer surplus, and deadweight loss?
What will be an ideal response?