If a tax is imposed in a market in which demand is perfectly inelastic
A) the buyers pay the entire tax.
B) the sellers pay the entire tax.
C) the buyers and the sellers both pay a portion of the tax.
D) neither the buyer nor the seller pays the tax.
A
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The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the producer surplus?
A) area A + area B + area C B) area A + area F C) area B + area C + area D + area F D) area C + area D + area E + area G E) area F
Which of the following is FALSE?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other b. After acquiring a substitute product, lower prices on both the products c. After acquiring a complementary product, lower prices on both the products d. All of the above
An individual will never buy complete insurance if:
a. he or she is risk averse. b. insurance premiums are unfair. c. he or she is a risk taker. d. insurance premiums are fair.
The labor force in an economy consists of all: a. the people in the economy who are not retired
b. the people in the economy over 16 years of age. c. the adults in the economy between 18 and 65 years old who are able to work. d. the civilian noninstitutional adult population that is either working or looking for work. e. the noninstitutional adult population who are graduates of high school.