As the elasticity of demand falls, the tax burden is shifted from the _____ to the _____.
Fill in the blank(s) with the appropriate word(s).
seller; buyer
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Suppose the price of apples decreases from $1.00 to $0.80 each and, as a result, the quantity of apples demanded increases from 800 to 1,000 . Using the midpoint method, the price elasticity of demand for apples in the given price range is
a. 0.22. b. 0.5. c. 1.0. d. 4.5.
The Sherman Antitrust Act states that if a person can prove that he was damaged by an illegal arrangement to restrain trade, he could sue and recover three times the damages he sustained
a. True b. False Indicate whether the statement is true or false
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the total economic surplus from this transaction was:
A. $195 B. $30 C. $215 D. $185
Suppose the elasticity of demand for Mexican food is 3.00 and the elasticity of supply is 1.20. If the government imposes a sales tax on Mexican food, which of the following occurs?
i. Less Mexican food is purchased by buyers. ii. Less Mexican food is produced by sellers. iii. The government receives the excess burden as revenue. iv. Both the consumer surplus and the producer surplus decrease. A) i and ii B) iii only C) i, ii, and iv D) iv only E) i, ii, iii, and iv