If demand is relatively elastic and supply is relatively inelastic, then the incidence of a tax will fall mainly on consumers
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Labor unions are restrained in their wage demands because
A. most unions deal with employers who have superior bargaining power. B. marginal wage cost curves lie above labor supply curves in most labor markets. C. legislation limits annual increases in nominal wages to 6%. D. the labor demand curve is downward-sloping.
When federal government spending amounts to less than tax revenues, the federal government runs a budget deficit
Indicate whether the statement is true or false
Refer to the scenario above. What is the present value of the benefits of buying the extended warranty?
A) $33.04 B) $39.82 C) $52.10 D) $60
According to the law of diminishing marginal utility, the marginal utility curve is ____
a. vertical b. flat. c. upward sloping. d. downward sloping.