If the government decides to levy an ad valorem tax on product with a perfectly inelastic supply. The consumers tax incidence will be
A) 0
B) 1
C) .5
D) Cannot be determined.
A
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Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. His bargaining position could get worse if
a. The customer leaves b. Another customer enters the store, interested in the car c. He gets an offer from another seller d. All of the above
A linear, upward-sloping supply curve has
a. a constant slope and a changing price elasticity of supply. b. a changing slope and a constant price elasticity of supply. c. both a constant slope and a constant price elasticity of supply. d. both a changing slope and a changing price elasticity of supply.
The Dow Jones Industrial Average:
A. gives greater weight to shares with higher prices. B. gives equal weight to a change in the price of the stock of any company in the index. C. is a value-weighted index. D. reflects that a 10% increase in a share of stock selling for $30 will have the same effect on the index as a 10% increase in the price of a stock selling for $60.
This Application illustrates how a change in weather conditions can adversely impact the ________ by ________ the price of a good
A) demand; decreasing B) supply; decreasing C) demand; increasing D) supply; increasing