Whether an excise tax is imposed on a demander or supplier is irrelevant because
a. in either case the price that the demander has to pay will decrease; while the price the supplier receives will increase
b. in either case the price that the demander has to pay will increase; while the price the supplier receives will decrease
c. either situation will create excess demand
d. either situation will create excess supply
e. none of these are correct
B
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Three potential rescuers witness a drowning surfer. Each is willing to rescue the surfer with probability 0.80. What is the probability that the surfer is rescued?
What will be an ideal response?
When underproduction occurs,
A) producers gain more surplus at the expense of consumers. B) marginal cost is greater than marginal benefit. C) consumer surplus increases to a harmful amount. D) there is a deadweight loss that is borne by the entire society. E) the deadweight loss harms only consumers.
There is an inverse relationship between the price-cost margin and the level of competition in a particular industry
Indicate whether the statement is true or false
Refer to Scenario 2.1. If P = $15, which of the following is true?
A) Quantity supplied is greater than quantity demanded. B) Quantity supplied is less than quantity demanded. C) Quantity supplied equals quantity demanded. D) There is a surplus.