What is meant by "tax incidence"?
What will be an ideal response?
Tax incidence refers to the actual division of the burden of a tax between buyers and sellers in a market.
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In 1999, both the equilibrium price and equilibrium quantity of widgets increased. Use supply and demand analysis to explain how these changes could have occurred
What will be an ideal response?
Nona has just gone on a bike ride for an hour and says it gave her a utility of 7. If she chooses to continue to ride her bike for another hour:
A. we can assume she will get at least a marginal utility of more than 7. B. we can assume she will get a marginal utility of 7. C. we can assume she will get a marginal utility of less than 7. D. we can assume Nona's total utility will fall because of diminishing marginal utility.
A tariff will decrease the supply of the product
a. True b. False Indicate whether the statement is true or false
Which statement best illustrates the law of diminishing returns?
A. The average total cost of the last unit of output produced is less than the average total cost of the preceding unit of output B. The marginal product of the last unit of a resource used is less than the marginal product of the preceding unit of resource C. The average product of the last unit of a resource used is less than the average product of the preceding unit of resource D. The marginal cost of the last unit of output produced is less than the marginal cost of the preceding unit of output