Author Question: Refer to Figure 2-4. A movement from Y to Z A) represents an increase in the demand for plastic ... (Read 88 times)

jayhills49 · **on:** Jun 29, 2018

Refer to Figure 2-4. A movement from Y to Z

A) represents an increase in the demand for plastic products.
B) is the result of a decrease in preference for food products.
C) is the result of advancements in plastic production technology.
D) is the result of advancements in food production technology.

Question 2

Refer to Figure 4-11. Suppose the market is initially in equilibrium at price P1 and then the government imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax?

A) The consumer will bear a greater share of the tax burden if the demand curve is D2.
B) The consumer will bear a greater share of the tax burden if the demand curve is D1.
C) The consumer will bear the entire burden of the tax if the demand curve is D1 and the producer will bear the entire burden of the tax if the demand curve is D2.
D) The consumer's share of the tax burden is the same whether the demand curve is D1 or D2.