The tax burden for a good falls largely on _____
a. the producers who have a perfectly elastic supply of the good
b. the consumers who have a less elastic demand for the good
c. the consumers who have a perfectly elastic demand for the good
d. the producers who have an unit elastic supply of the good
b
You might also like to view...
In a competitive market where the elasticity of the market demand curve is -0.5, there are 100 identical firms, and the elasticity of the supply curve to the other 99 firms is 4. What is the elasticity of the demand curve of the 100th firm?
A) -446 B) -489 C) -50 D) -0.5
When government intervenes in a competitive market by imposing an effective price ceiling, we would expect the quantity supplied to ________ and the quantity demanded to ________
A) fall; rise B) fall; fall C) rise; rise D) rise; fall
If your income increases from $30,000 to $35,000 and your consumption increases from $11,000 to $12,000 . your marginal propensity to consume (MPC) is:
a. 0.2. b. 0.4. c. 0.5. d. 0.8. e. 1.0.
Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. Suppose that you borrow $60 and spend $160 today. After you repay your loan one year from today, how much money will you have available for consumption one year from today?
a. $0 b. $25 c. $50 d. $75