If elasticity of demand is 1 and elasticity of supply is 0, what percentage of a 10 percent tax will be borne by consumers?
A. 10 percent.
B. 50 percent.
C. 0 percent.
D. 100 percent.
Answer: C
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Refer to Figure 4-3. If the market price is $3.50, what is the consumer surplus on the first ice cream cone?
A) $0 B) $0.50 C) $3.50 D) $9.00
A recent purchaser of a bond that agrees to pay an annual nominal amount would hope that interest rates do not rise
Indicate whether the statement is true or false
Anything that would cause people to want to hold more of their money as cash and less in the form of check able deposits would
a. increase the multiple expansion of the money supply. b. cause the Federal Reserve to raise the reserve requirement. c. reduce the multiple expansion of the money supply. d. increase the size of the money supply.
Economists feel that taxing nominal capital gains imposes costs on the economy due to
a. increased consumption. b. reduced consumption. c. increased investment. d. reduced investment.