Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will decrease the effective price received by sellers of picture frames by
a. less than $0.50.
b. $0.50.
c. between $0.50 and $1.
d. $1.
a
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Which of the following did not contribute to the increase in competition in the United States between 1958 and 1988?
a. antitrust activity b. deregulation of transportation industries c. deregulation of banking d. increased imports e. conglomerate mergers
If the annual inflation rate is higher than 0%, which of the following statements is correct?
a. The specific country is experiencing hyperinflation when viewed over a long period of time. b. Real GDP growth must be higher than nominal GDP growth. c. Nominal GDP growth must be higher than real GDP growth. d. Nominal GDP growth is only higher than real GDP growth if real GDP growth is positive. e. Nominal GDP growth must be positive.
Suppose there is currently a tax of $50 per ticket on airline tickets. Buyers of airline tickets are required to pay the tax to the government. If the tax is reduced from $50 per ticket to $30 per ticket, then the
a. demand curve will shift upward by $20, and the effective price received by sellers will increase by $20. b. demand curve will shift upward by $20, and the effective price received by sellers will increase by less than $20. c. supply curve will shift downward by $20, and the price paid by buyers will decrease by $20. d. supply curve will shift downward by $20, and the price paid by buyers will decrease by less than $20.
The demand curve perceived by a perfectly competitive firm
A. is horizontal B. shows economies of scale over a large range of output C. shows that such a firm is a price-marker D. all of the above