To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. The sport equipment producers' share of this tax would be greater than shown in the above figure if
A) the demand was more elastic.
B) the demand was more inelastic.
C) the supply was more elastic.
D) Both answers A and C are correct.
A
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Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. What is the cost to Firm A of eliminating 2 tons of pollution?
A. $100 B. $200 C. $700 D. $425 E. $1,500
If consumers experience an decrease in lifetime income, current spending will ________, current saving will ________, and future spending will ________
A) decrease; decrease; decrease B) increase; decrease; decrease C) increase; decrease; increase D) increase; increase; decrease E) decrease; increase; increase
A perfectly inelastic supply curve
a. cannot exist b. is horizontal c. has an elasticity of 0 d. has an elasticity of 1 e. is vertical
Which of the following correctly describes price discrimination?
a. Selling the same good or service for different prices to different consumers for reasons unrelated to cost. b. Buying goods at a lower cost in one market and selling it at a higher price at another market. c. Selling the same good or service for the same price to different consumers. d. Charging higher prices for goods and services that are exported compared to those sold in the domestic market.