Author Question: A sales tax will be divided so that A) the buyers pay the full amount if supply is perfectly ... (Read 65 times)

james0929 · **on:** Jun 29, 2018

A sales tax will be divided so that

A) the buyers pay the full amount if supply is perfectly inelastic.
B) the sellers pay the full amount if supply is perfectly inelastic.
C) the sellers pay the full amount if supply is perfectly elastic.
D) both buyers and sellers pay some of the tax if supply is perfectly elastic.

Question 2

The figure above shows a monopoly firm's demand curve. At point u in the figure, the demand facing the monopoly is

A) elastic.
B) unit elastic.
C) inelastic.
D) less than the supply.