When a tax is placed on the buyers of lemonade, the
a. sellers bear the entire burden of the tax.
b. buyers bear the entire burden of the tax.
c. burden of the tax will be always be equally divided between the buyers and the sellers.
d. burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal.
d
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Which of the following statements about perfect price discrimination is false?
A) For the price-discriminating firm, its marginal revenue curve coincides with its demand curve. B) There is no consumer surplus if a firm engages in perfect price discrimination. C) A condition for perfect price discrimination is that it must be costlier to service some customers than others. D) Perfect price discrimination occurs when the seller charges the highest price each consumer would be willing to pay for the product.
Governments around the world tend to auction quota licenses
A) never. B) seldom. C) often. D) always.
The goal of the firm is
A) low labor turnover. B) to maximize sales. C) to minimize costs. D) profit maximization.
The income elasticity of demand for agricultural products is typically
a. less than zero. b. greater than zero, but less than one. c. greater than one. d. infinity.