Multiple Choice
The price elasticity of demand for tambourines is 0.25, and the price elasticity of supply for tambourines is 2. What happens if an excise tax is placed on the sellers of tambourines?
A) The entire burden of the tax falls on the sellers.
B) The incidence of the tax falls more heavily on the buyers.
C) Sellers pay the entire burden of the tax.
D) Buyers and sellers share the incidence of this tax equally.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: List the factors that determine whether a
Q9: If consumers' response to a price change
Q10: The percentage change in quantity supplied in
Q11: An economist has determined that the income
Q12: Seamus sells 100 party hats when the
Q14: How is price elasticity of demand calculated?<br>A)
Q15: (Use Figure: A Demand Curve) Use the
Q16: Profit is the:<br>A) total amount of money
Q17: The sign of the cross-price elasticity of
Q18: A good that a consumer always buys