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Author Question: The supply of oil is more elastic than the demand for oil. If oil is taxed 10 per barrel, how will ... (Read 58 times)

KimWrice

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on: Jun 29, 2018
The supply of oil is more elastic than the demand for oil. If oil is taxed 10 per barrel, how will the tax be divided between the buyers and sellers?
 
  A) The sellers will pay more of the tax than the buyers.
  B) The buyers will pay more of the tax than the sellers.
  C) The sellers and buyers will split the tax evenly.
  D) The sellers will pay the entire tax.

Question 2

In the above figure, when the economy is in a long-run equilibrium, the price level will be
 
  A) 90.
  B) 100.
  C) 110.
  D) 120.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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coyin

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

D


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