Suppose a tax of $1 per unit is imposed on a good. The more elastic the supply of the good, other things equal, the
a. smaller is the response of quantity supplied to the tax.
b. larger is the tax burden on sellers relative to the tax burden on buyers.
c. larger is the deadweight loss of the tax.
d. All of the above are correct.
c
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If income increases and the demand for bus rides decreases,
A) bus rides are a normal good. B) consumers are behaving irrationally. C) bus rides are an inferior good. D) bus rides are a substitute good. E) bus rides must be a complement good with some other good.
An increase in the equilibrium price and the equilibrium quantity would be caused by an increase in demand
a. True b. False Indicate whether the statement is true or false
Points outside the production possibilities frontier represent infeasible levels of production
a. True b. False Indicate whether the statement is true or false
Total revenue for a perfectly competitive firm producing six units of output is $48. Total revenue for producing eight units of output is $64. Given this information, the:
A. average revenue for producing eight units is $16. B. marginal revenue for producing the eighth unit is $16. C. firm should raise its price. D. marginal revenue for producing the eighth unit is $8.