The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. The amount of the tax paid by the sellers would be greater than shown in the figure if
A) the demand was more elastic.
B) the demand was more inelastic.
C) the supply was more elastic.
D) Both answers A and C are correct.
A
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You notice that the price of orange juice at your local grocery store has increased. Which of the following statements is not a possible explanation for the rise in the price of orange juice? a. Frosty weather destroys oranges causing the price of oranges to increase
b. As a result of an increase in income, consumers wish to purchase more orange juice at every price level. c. A recent scientific study is reported in the press that suggests that apple juice may be contaminated with pesticides. d. Due to the bioengineering of orange trees, the domestic supply of oranges increases.
Because of the book, The Other America, Michael Harrington was important in beginning the
A. Peace Corps. B. “War on Poverty.” C. regulation of industry. D. Environmental Protection Agency.
Macro equilibrium always occurs when
A. The labor force is fully employed. B. Aggregate demand equals aggregate supply at a given average price level. C. The level of output is expanding. D. Aggregate supply is greater than aggregate demand.
Each of the following is an example of price discrimination except
A. senior citizen discounts at restaurants. B. lower-priced movie tickets at "rush hour" to attract customers at dinner time. C. high-priced tickets just behind the bench of the NBA championship team. D. student rates for subscriptions to Business Week.