A tax is imposed on orange juice. Consumers will bear more of the burden of the tax:
a. If the demand for orange juice is relatively inelastic and the supply is relatively elastic.
b. If the demand for orange juice is relatively elastic and the supply is relatively inelastic.
c. If the supply for orange juice is perfectly inelastic
d. none of the above
a
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When the price level goes up, the purchasing power of the dollar
A) varies directly with the value of the euro. B) remains constant. C) also increases. D) falls.
Economists view pollution as an economic problem that arises because
a. private enterprise always minimizes the amount of pollution produced b. profitable firms rarely pollute c. as the economy grows, the level of pollution declines d. firms that pollute do not pay the full social cost of producing their output e. pollution costs are borne by the consumer
Resources can be divided into _______
A. people, money, and machines. B. savings, spending, investment, and capital. C. human resources, technology, and government. D. natural resources, labor, capital, and entrepreneurial ability. E. income, interest, and expenditure.
What is the disadvantage of average-cost pricing?
What will be an ideal response?