Refer to above figure in which negative externality existed. The government imposes a $1.00 pollution tax on the producer. Supply shifts leftward.

A. This tax will be borne entirely by the producer.
B. The amount of the tax shifted to the consumer depends on the consumer's elasticity of the demand curve.
C. This tax will be shifted entirely to the consumer.
D. The tax will be divided into equal amounts between consumer and producer.


Answer: B

Economics

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Refer to Table 6-5. Katie Graham owns a kayak rental service in Santa Barbara. Table 6.5 shows her estimated demand schedule for kayak rentals per week. She would like to increase her sales revenue by changing the price she charges for rentals

At present she charges $75. Based on the information in the table, Katie A) should raise her price to $80 to increase her revenue because the demand for kayak rentals is price inelastic. B) should raise her price to earn the most revenue. C) should lower her price to $60 to increase her revenue because the demand for kayak rentals is price elastic. D) is not able to increase her revenue by changing her price because the demand for kayak rentals is unit elastic.

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Clark is willing to pay $100 for a new softball glove. If the market price for the glove is $150, _____

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Economics

Which of the following is true? If a central bank runs out of reserve assets, then:

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Economics

Which of the following is incorrect? During the Great Recession U.S:

a. Wealth fell. b. Unemployment duration rose. c. Stock market rose. d. Inflation fell. e. All of the above are correct.

Economics