The demand and the supply for a good are each neither perfectly elastic nor perfectly inelastic. If a sales tax on sellers of the good is imposed, the tax is paid by
A) only buyers.
B) only sellers.
C) both buyers and sellers.
D) neither buyers nor sellers.
C
You might also like to view...
The level toward which the economy is moving and where it will stay unless spending patterns of the economy will change is called the equilibrium level of output and income
Indicate whether the statement is true or false
If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economists would say that expectation formation is
A) irrational. B) rational. C) adaptive. D) reasonable.
Restructuring is another word for deregulation
Indicate whether the statement is true or false
Suppose that the value of the long-run absolute elasticity of demand for a good is one. Then, we know the short-run absolute price elasticity of demand will be
A. greater than one. B. less than one. C. infinity. D. elastic.