A good has a perfectly inelastic supply and a downward sloping demand curve. Imposing a sales tax of $1 per unit on the sellers of the good
A) raises the price paid by demanders by more than $1.00.
B) raises the price paid by demanders by $1.00.
C) raises the price paid by demanders by less than $1.00.
D) does not change the price paid by demanders.
D
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The quantity of reserves supplied equals
A) nonborrowed reserves minus borrowed reserves. B) nonborrowed reserves plus borrowed reserves. C) required reserves plus borrowed reserves. D) total reserves minus required reserves.
Which of the following is not true regarding a change in quantity demanded?
a. A change in quantity demanded is shown by a movement along a given demand curve. b. The demand curve shifts whenever the quantity demanded changes. c. A change in the price of a good, other things constant, will lead to a change in quantity demanded. d. The lower the price of a product, other things constant, the higher the quantity demanded. e. A shift of the supply curve might cause a change in quantity demanded.
Which of the following was designed to head off panics among market participants and forestall crashes like the ones in October 1929 and October 1987?
a. Program trading b. Circuit breakers c. Derivatives d. Volatility index
Beverly owns a rabbit and receives a $600 benefit from owning it. Sometimes Beverly's rabbit makes its way onto the lawn of her neighbor, Charles, and eats the vegetables in Charles' garden. This intrusion by the rabbit costs Charles $400 . Can both individuals become better off if Charles pays Beverly some amount of money to get rid of the rabbit? Explain