Suppose the supply of chocolate chips in Paulina is perfectly elastic and the government imposes a tax on the sellers. Which of the following is most likely to be true?
a. The deadweight loss of the tax equals zero
b. The supply curve is a vertical line.
c. The elasticity of supply equals zero.
d. The tax burden is shared equally between the buyers and the sellers.
a
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The above table gives assets and deposits for a (small) bank. The bank's deposits that are part of M2 are equal to
A) $600. B) $1600. C) $3,100. D) $30. E) $5,100.
Currency held outside the banking system is included
A) in M1 but not M2. B) in M2 but not M1. C) in both M1 and M2. D) in neither M1 nor M2.
Total debt is more important in figuring out the ability of a country to service its debt than are debt to GDP and debt to export ratios
Indicate whether the statement is true or false
The Consumer Price Index was 115 one year and 120 the next year. The rate of inflation from one year to the next was approximately:
A. 2.2 percent. B. 3.4 percent. C. 4.3 percent. D. 2.9 percent.