Goods that are heavily taxed, such as alcohol and cigarettes, ...

[dakota nelson]

Goods that are heavily taxed, such as alcohol and cigarettes, often have:
 a. relatively inelastic demand, such that the tax burden falls primarily on sellers and the deadweight loss associated with the tax is smaller than if demand were elastic.
  b. relatively elastic demand, such that the tax burden falls primarily on sellers and the deadweight loss associated with the tax is smaller than if demand were inelastic.
  c. relatively inelastic demand, such that the tax burden falls primarily on buyers and the deadweight loss associated with the tax is smaller than if demand were elastic.
  d. relatively elastic demand, such that the tax burden falls primarily on buyers and the deadweight loss associated with the tax is smaller than if demand were inelastic.

Question 2

The Phillips curve relationship can also be seen indirectly from the AD/AS model.
 a. True
  b. False
  Indicate whether the statement is true or false

[itsakadoozi]

Answer to Question 1

c

Answer to Question 2

True

[dakota nelson]

YES! Correct, THANKS for helping me on my review

[kjohnson]

Thanks for the timely response, appreciate it