Suppose the government imposes a $1 tax on frisbees, and the price of a frisbee paid by demanders rises by $1
A) The price rise is consistent with a perfectly elastic supply for frisbees.
B) The price rise is consistent with a perfectly elastic demand for frisbees.
C) The price rise is consistent with a downward-sloping supply curve for frisbees.
D) The price could never rise this much, so this situation cannot happen.
A
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Consumers expect that the price of a gallon of gasoline will rise next week. As a result
A) today's supply of gasoline increases. B) today's demand for gasoline increases. C) the price of a gallon of gasoline falls today. D) next week's supply of gasoline decreases.
The demand schedule for a product shows the relationship between how much of the product buyers are willing and able to buy and the
A. cost of producing the product. B. time period, say, from one month to the next. C. buyers' incomes. D. product's price.
Answer the following statement(s) true (T) or false (F)
1. A market demand curve is a horizontal summation of individual demand curves. 2. A change in a good’s own price leads to shifts in the demand curve. 3. The acronym SPENT can help you remember the five important factors that shift the demand curve for a good or service. 4. Substitutes are generally goods for which one could be used in place of the other.
Exhibit 15-3 Potatoes and wheat output (tons per day) CountryPotatoes Wheat United States4 2 Ireland3 1 In Exhibit 15-3, the United States has an absolute advantage in producing:
A. potatoes. B. wheat. C. both. D. neither.