If supply is more elastic than demand, the seller will pay _____ of a tax.
Fill in the blank(s) with the appropriate word(s).
less than half
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If the utilization rates of capital and labor are procyclical, then
A) output will rise in recessions and decline in expansions. B) measured productivity will be constant. C) the Solow residual will be procyclical. D) prices will be countercyclical.
If a firm in a perfectly competitive market faces a market price of $4, and it decides to produce 700 units, the firm's average revenue will be:
A. $4. B. $2,800. C. $175. D. $700.
The short-run Phillips curve portrays a(n):
a. direct relationship between total employment and the inflation rate b. inverse relationship between inflation and total employment. c. direct relationship between the unemployment rate and the inflation rate. d. inverse relationship between the unemployment rate and the inflation rate. e. inverse relationship between the price level and the unemployment rate.
Currently there is a market demand for toothpaste with baking soda in it. New medical studies show that baking soda has health benefits beyond clean teeth. After these studies are published, the market demand is such that at any price, consumers buy 10 more tubes of toothpaste than they used to. This is a parallel, rightward shift of the demand curve. Which of the following statements is true?
a. Because the curves are parallel, the elasticities don't change. b. Despite the fact that the curves are parallel, elasticity has increased. c. Even though the curves are parallel, the new one is more inelastic. d. There is no relationship between the curves and their elasticities. e. Elasticities on the new demand curve have increased at low prices and decreased at high prices.