A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose in a country, the working-age population doubles due to immigration. However, the country neglects investment in research and development and hence the country's level of technology is stagnant
Which of the following statements will be true of this economy? A) The economy will experience steady economic growth. B) The savings rate will remain stagnant over the years. C) The economy's output will rise at an increasing rate over time. D) The economy cannot achieve a sustained growth.
If the exchange rate falls, the quantity of dollars supplied
A) increases, and there is movement up along the supply curve of dollars. B) increases, and there is movement down along the supply curve of dollars. C) decreases, and there is movement up along the supply curve of dollars. D) does not change. E) decreases, and there is movement down along the supply curve of dollars.
Consumer sovereignty means that ______.
a. consumers vote with their dollars in a market economy b. governments have no power in determining which products will be made c. consumers have no obligation to pay taxes to the government d. governments must provide people with fundamental goods and services
For a typical firm, the long-run average total cost curve:
A. is lower than the short-run average total cost curves. B. is tangent to each possible short-run average total cost curve at one point. C. intersects each possible short-run average total cost curve at two points. D. passes through the minimum points of all possible short-run average variable cost curves.