The amount of deadweight loss from a tax depends upon the
a. price elasticity of demand.
b. price elasticity of supply.
c. amount of the tax per unit.
d. All of the above are correct.
d
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Suppose that in an hour Joe can prepare 10 sandwiches or 5 pizzas. The opportunity cost of Joe producing one sandwich is
A) 2 pizzas. B) 1/2 pizza. C) 5 pizzas. D) 1 pizza.
When drawn against the current real wage, the labor demand curve is
A) upward sloping because the marginal product of labor rises with the quantity of labor employed. B) upward sloping because the marginal product of labor declines with the quantity of labor employed. C) downward sloping because the marginal product of labor rises with the quantity of labor employed. D) downward sloping because the marginal product of labor declines with the quantity of labor employed.
Why can a monopoly not sell all that it desires at any given price?
What will be an ideal response?
At a price of $400, consumers demand 1,500 units of a computer. When the price of the computer increases to $440, quantity demanded drops to 1,200 units. The price elasticity of demand for the computer is:
a. 2.6. b. 2.2. c. 2.1. d. 2.3.