If sellers bear 1/3 of the tax burden and elasticity of demand is 2, what is the elasticity of supply?
A. 4
B. 3
C. 2
D. 1
Answer: A
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The fact that people prefer present consumption to future consumption results in:
A. an upsloping supply of loanable funds curve. B. a downsloping demand for loanable funds curve. C. a downsloping supply of loanable funds curve. D. an upsloping demand for loanable funds curve.
To determine whether a market is perfectly competitive, economists examine the
A. number of firms in the market. B. similarities among the products of the different firms in the market. C. ease of entry and exit by firms in the market. D. All of the responses are correct.
The exchange rate is
a. the rate at which goods will exchange for each other in the international market b. the number of units of one currency required in exchange for one unit of another currency c. the number of units of one currency required in exchange for one unit of another countries' good d. established by the ratio of the values of currency to goods e. set by each individual country, which is why we have deficits and surpluses on current account
Market economies are likely to suffer from recessions and inflation because the government plans all economic activity
a. True b. False Indicate whether the statement is true or false