When the supply of a good is perfectly elastic, the entire tax is paid by the buyers
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following countries experienced hyperinflation during the 1920s?
A) The United States B) Canada C) Germany D) England
If the government places a price ceiling on cancer-treating drugs, then
A. The supply of cancer-treating drugs will increase. B. There will be no change in the number of people who die from cancer. C. Fewer cancer treating drugs will be available. D. Fewer people will die from cancer.
According to conservatives the Bureau of Labor Statistics
A. overstates the number of unemployed and overstates the unemployment rate. B. overstates the number of unemployed and understates the unemployment rate. C. understates the number of unemployed and understates the unemployment rate. D. understates the number of unemployed and overstates the unemployment rate.
Refer to the following graph.
A $4 tax is levied on suppliers (represented by S0 without the tax). From the graph and tax structure you know that the:
A. elasticity of demand is less than the elasticity of supply. B. elasticity of supply is less than the elasticity of demand. C. elasticities of supply and demand are about the same. D. elasticities cannot be calculated.