A tax burden falls more heavily on the side of the market that
a. has a fewer number of participants.
b. is more inelastic.
c. is closer to unit elastic.
d. is less inelastic.
b
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When considering voting options, if option X beats Y, and Y beats Z, then transitivity says that:
A. Z beats X. B. X beats Z. C. Z beats Y. D. Y beats X.
Which of the following refers to the positive or negative effect on parties who are not directly involved in a transaction?
A. Consumption effect B. Externality C. Incentive distortions D. Invisible hand
When the Times Mirror Company purchased the right to discharge 150 tons of hydrocarbons annually from other polluters, this was an example of
A. following an incentive-based regulation. B. following a command-and-control regulation. C. conducting a transaction between polluters typical of those that have been carried out since the early 20th century. D. an illegal transaction.
The market demand for wheat is Q = 100 - 2p + 1pb, where pb is the price of barley. If the price of wheat is $2, the price elasticity of demand
A) equals (-4/46). B) equals (-46). C) equals (-1). D) cannot be calculated without more information.