The more ________ the demand is for a product, the ________ tax revenue that will be raised by taxing the product.
A. elastic; more
B. inelastic; less
C. inelastic; more
D. Tax revenues are unrelated to a product's price elasticity of demand.
Answer: C
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Refer to the table below. Given that an individual's opportunity cost of time is $30 per hour, which of the two apartments should she rent?
Apartment Monthly Commuting Time (Hours) Monthly Rent ($) 1 60 3,600 2 20 4,500
The addition of gasoline pumps at a grocery store is a good example of a network externality
Indicate whether the statement is true or false
A perfectly competitive market is characterized by highly advertised goods
a. True b. False Indicate whether the statement is true or false
A bond with a par value of $1,000 is traded at $2,000 . The interest rate offered on the bond is 10 percent per annum. The bond matures after a period of 5 years. The yield from the bond is:
a. 5 percent. b. 10 percent. c. 20 percent. d. 15 percent. e. 2.5 percent.