How a sales tax is divided between buyers and sellers is ...

[olgavictoria]

How a sales tax is divided between buyers and sellers is determined by
 
  A) the government's choice of whom to tax.
  B) who the law says must pay the tax.
  C) the elasticities of supply and demand.
  D) the revenue needs of government.

Question 2

A perfectly competitive firm is producing at the point where its marginal cost equals its marginal revenue. If the firm boosts its output, its total revenue will ________ and its profit will ________.
 
  A) rise; rise
  B) rise; fall
  C) fall; rise
  D) fall; fall

[EAN94]

Answer to Question 1

C

Answer to Question 2

B

[olgavictoria]

Thanks for the timely response, appreciate it

[bulacsom]

Wow, this really help