Refer to the following graph.
A $4 tax is levied on suppliers (represented by S0 without the tax). From the graph and tax structure you know that the:
A. elasticity of demand is less than the elasticity of supply.
B. elasticity of supply is less than the elasticity of demand.
C. elasticities of supply and demand are about the same.
D. elasticities cannot be calculated.
Answer: C
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An oligopolist's demand curve is
A) identical to that of a perfectly competitive firm. B) vertical on a price-quantity diagram. C) unknown because a response of firms to price changes by rivals is uncertain. D) identical to that of a monopolistically competitive firm.
If a U.S. firm purchases a foreign firm that violated the Foreign Corrupt Practice Act (FCPA), the U.S. firm ________ responsible for the foreign firm's actions under Part ________ of the FCPA.
A) is; III B) is not; II C) is not; III D) is; II
The Phillips Curve shows the trade-off between
a. unemployment and output b. inflation and output c. rates of unemployment and inflation d. imports and exports e. unemployment and inflation
With price sensitivity in mind, who would you expect to be more likely to purchase food at the movie concession counter?Click to view larger image.
a. those who attend matinees b. those who attend evening movie showings c. those who attend matinees and those who attend evening movie showings are equally likely to purchase concessions d. it is not possible to determine the answer to the question with the information given