If the demand curve is more elastic than the supply curve, then:
A. tax incidence will be shared equally by buyer and seller.
B. the sellers will bear a greater tax incidence than buyers.
C. the buyers will bear a greater tax incidence than sellers.
D. None of these is true.
Answer: B
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In 1963, the tax rate for those individuals earning in the highest income tax bracket was 91 percent
a. True b. False
A bond will pay $10,000 to its owner in 5 years. If the relevant annual interest rate is 5%, what is the bond worth today (rounded to the nearest 100)?
A. $9,500 B. $7,800 C. $6,600 D. $1,900 E. None of the above.
A firm should consume physical capital until:
A) the value of the total product of physical capital equals the price of physical capital. B) the value of the average product of physical capital equals the price of physical capital. C) the value of the marginal product of physical capital equals the price of physical capital. D) the value of the marginal product of physical capital equals the value of the marginal product of labor.
The demand for capital is similar to the demand for labor in that
A) both are inelastic at high prices and elastic at low prices. B) both are derived demands. C) the marginal product of labor is derived from the marginal product of capital. D) the marginal revenue product curve for labor is the same as the marginal revenue product curve for capital.