For a given supply curve, how does the elasticity of demand affect the burden of a tax imposed on a product?
A) The excess burden of the tax will be greater when the demand is more elastic than when it is less elastic.
B) The excess burden of the tax will be greater when the demand is less elastic than when it is more elastic.
C) The excess burden of the tax will be minimized when the demand is unit elastic.
D) The excess burden of the tax will be greater when the elasticity of supply is greater than the elasticity of demand.
A
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Speculation is the opposite of hedging
Indicate whether the statement is true or false
Computing the CPI is important because ________
A) it is a very accurate and error-free measure of the cost of living B) it helps predict spending patterns for particular goods and services C) government uses it to index entitlements, such as social security benefits, so that beneficiaries do not lose purchasing power in periods of inflation D) all of the above E) none of the above
Exhibit 6-11 Short-run cost schedule for pizzeria's hourly production TotalProduct TotalCost 0 pizzas $ 20 10 70 20 100 30 150 40 250 In Exhibit 6-11, the marginal cost curve crosses the average total cost curve at
A. 10 pizzas. B. 20 pizzas. C. 30 pizzas. D. 40 pizzas.
If snowboarding increases in popularity, what would be expected to happen to the demand and wages of workers who make the snowboards?
A. demand decreases and wages increase B. demand decreases and wages decrease C. demand increases and wages decrease D. demand increases and wages increase