A sales tax is divided so that buyers pay the full amount if
A) demand has unitary elasticity.
B) supply has unitary elasticity.
C) demand is perfectly inelastic.
D) supply is perfectly inelastic.
C
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Exhibit 30-1
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The consumer's gain from the imposition of a price ceiling is higher when
A) the own price elasticity of market demand is high and the price elasticity of market supply is high. B) the own price elasticity of market demand is high and the price elasticity of market supply is low. C) the own price elasticity of market demand is low and the price elasticity of market supply is high. D) the own price elasticity of market demand is low and the price elasticity of market supply is low.
An increase in the cost of lumbering activities will:
a. increase the quantity of wood supplied to the furniture market. b. decrease the quantity of wood supplied to the furniture market. c. decrease the supply of wood to the furniture market. d. increase the supply of wood to the furniture market.
If the U.S. dollar appreciates relative to the British pound, then we pay fewer dollars for a pound
Indicate whether the statement is true or false