If an excise tax is imposed on a good, then the supply curve
A. shifts up by the amount of the tax.
B. does not change.
C. shifts up by the amount of the demand elasticity.
D. shifts down by the amount of the tax.
Answer: A
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What does unitary demand mean?
a) The elasticity of demand is mathematically determined b) The elasticity of demand is different at each unit on the price range c) The demand is inelastic at a low price but becomes elastic as the price rises d) The percentage change in the quantity demanded is exactly equal to the percentage change in price
Firms that extend credit to borrowers using funds raised from savers are called:
A. bond dealers. B. central banks. C. financial intermediaries. D. stock brokers.
Predatory pricing occurs when a monopolist charges a:
A. price above average total cost. B. price above average variable cost. C. low price to drive out competition, then charges a high price. D. high price to drive out competition, then charges a low price.
An international agreement from 1947 designed to lower tariffs was
A) the General Agreement on Tariffs and Trade. B) the World Trade Organization. C) the World Agreement on Tariffs and Trade. D) the Trade and Tariff Agreement.