To determine who bears the greater share of a tax, we compare the
A) number of buyers to the number of sellers.
B) elasticity of supply to the elasticity of demand.
C) size of the tax to the price of the good.
D) government tax revenue to the revenue collected by the suppliers.
E) pre-tax quantity to the post-tax quantity.
B
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When a commercial bank borrows directly from the Fed, it pays
A) a zero rate of interest. B) an interest rate called the federal funds rate. C) an interest rate called the discount rate. D) the Fed in a mutually agreed upon quantity of gold reserves in its vaults.
The above figure shows the payoff to two firms in an industry deciding to make an investment in worker safety. The Nash equilibrium
A) is for just one of the firms to make the investment. B) is for both firms to make the investment. C) is for neither firm to make the investment. D) does not exist.
Debit cards are safer than credit cards because debit cards generally require a PIN number
a. True b. False Indicate whether the statement is true or false
For a monopolistically competitive firm, which of the following is ensured by product differentiation?
a. Long-run profit b. Market power c. Economies of scale d. Increasing returns to scale