The more elastic the demand curve, the ____ will be the effect of a tax on the quantity exchanged and the ____ will be the welfare cost.
a. greater; greater
b. greater; smaller.
c. smaller; greater.
d. smaller; smaller.
a
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Assuming that the average duration of its assets is five years, while the average duration of its liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by ________ of
the total original asset value. A) 5 percent B) 10 percent C) 15 percent D) 25 percent
If oranges were found to cure cancer
A) the equilibrium price of apples would likely fall. B) the equilibrium price of oranges would likely increase in the near term. C) the equilibrium quantity of oranges would likely increase. D) All of the above.
A nondiscriminating pure monopolist's demand curve:
A. lies above its marginal revenue curve. B. coincides with its marginal revenue curve. C. lies below its marginal revenue curve. D. is perfectly inelastic.
How did the global supply of savings impact the formation of the housing bubble?
What will be an ideal response?