The more elastic the supply of a product, the more likely that the actual benefit of a subsidy granted of the product will
a. go to sellers.
b. go to buyers.
c. go equally to both buyers and sellers.
d. do none of the above.
B
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Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250 . Based on this information, the price elasticity of demand for Jim's product is
a. >1 b. 1 c. <1 d. 0
A perfectly competitive firm decides to shut down if:
a. the price falls below the average-total-cost. b. average revenue falls below the average-variable-cost. c. the price falls below the marginal cost. d. the average revenue curve lies below the marginal cost curve. e. the total revenue is less than total cost.
The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the domestic quantity demanded will be ________ microwaves.
A. 5,600 B. 4,000 C. 5,000 D. 4,500
When a consumer is able and willing to buy a good or service, s/he creates ____________ .
a. consumption b. demand c. elasticity d. allocation