Author Question: The price of crude oil rose to over 100 per barrel in early 2013. What would we expect to see happen ... (Read 57 times)

Jramos095 · **on:** Jul 1, 2018

The price of crude oil rose to over 100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil?

A) The supply of plastic will increase.
B) The supply of plastic will decrease.
C) The supply of plastic will stay the same because the government requires plastic producers to meet statutory minimum production levels.
D) The supply of plastic will stay the same because of the profit motives of plastic producers.

Question 2

Legislators are indifferent about placing a unit tax on the suppliers of a good or the demanders. If a tax is placed on the suppliers of the good _____

a. suppliers will pay the entire tax
b. suppliers will pay more than if the tax were initially placed on the demanders
c. suppliers will pay exactly what they would pay if the tax were initially placed on the demanders
d. suppliers will pay less than if the tax were initially placed on the demanders