Cigarettes are highly addictive and therefore have a very low elasticity of demand. A $2.00 increase in the national sales tax on cigarettes would likely cause the price paid by buyers of cigarettes to
A) increase by more than $1.00 but less than $2.00.
B) increase by $2.00.
C) increase by more than $2.00.
D) increase by less than $1.00.
E) remain unchanged.
A
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When an employee at a grocery store scans the price of your items, bags the groceries, and collects your paper, the individual has provided
A) physical capital.
B) entrepreneurship.
C) a service.
D) land.
When is it more expensive for a country to go to war – during a recession or during an economic boom? Explain
What will be an ideal response?
"Private costs are borne by individuals while social costs are borne by society." Do you agree or disagree? Why?
What will be an ideal response?
When a unit tax of $1 is levied on a product
A. the consumer pays part of the $1 and the producer pays the rest. B. the entire $1 is paid by the producer. C. both the consumer and producer pay $1 each. D. the entire $1 is paid by the consumer.