When does the burden of a tax imposed on a good fall more heavily on consumers?
What will be an ideal response?
The tax burden falls more heavily on consumers if demand for the good is less sensitive to price changes than its supply, that is, if the elasticity of demand is less than the elasticity of supply. This is because if demand is inelastic, buyers do not reduce their consumption of the good immediately and continue to purchase the taxed good despite the higher price.
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A characteristic of the inflation rate is that ________
A) it typically goes down in a boom B) it typically goes up in a recession C) it is a lagging indicator D) all of the above E) none of the above
For those eligible, unemployment insurance benefits are available for at least 26 weeks
Indicate whether the statement is true or false
When studying world stock indexes, we observe that:
A. the indexes are very comparable. B. most of the world's indexes are price-weighted. C. the indexes are comparable but only in percentage terms. D. the S&P 500 is largest in terms of index value.
When there are external economies of scale in an industry
A) firm costs decrease as individual firms expand output. B) firm costs decrease as the industry expands in size. C) firms will generally increase their size. D) firms must be located in different regions.