If demand is elastic, and the government decides to raise the tax on new cars, the price of cars will increase by a ________ amount and car buyers will bear a ________ share of the tax.
A. large; large
B. large; small
C. small; large
D. small; small
Answer: D
You might also like to view...
A shift occurs in the supply curve for salt when:
A. the price of salt increases. B. improvements are made in the production process. C. salt is found to be associated with high blood pressure. D. consumers expect the price of salt to increase in the future.
According to Figure 9.1, saving equals zero at an income level of
A. $2,000 billion. B. $0. C. $1,000 billion. D. $500 billion.
International capital flows are purchases and sales of financial assets across national borders.
Answer the following statement true (T) or false (F)
Suppose a blackjack gambler approaches an insurance company and seeks to purchase an insurance policy that his next trip to Reno, NV will not net $10,000. The insurance company
A) will sell her an insurance policy because the proposal entails uncertainty not risk. B) will sell her an insurance policy because the proposal entails risk not uncertainty. C) will not sell her an insurance policy because the proposal entails uncertainty not risk. D) will not sell her an insurance policy because the proposal entails risk not uncertainty.