Author Question: A tax is imposed on the sale of a product. As long as neither the supply nor the demand is perfectly ... (Read 93 times)

imowrer · **on:** Jun 29, 2018

A tax is imposed on the sale of a product. As long as neither the supply nor the demand is perfectly elastic or inelastic

A) there is no change in the price paid by the consumers.
B) the price paid by the consumers increases by the full amount of the tax.
C) the price paid by the consumers increases by less than the amount of the tax.
D) the price paid by the consumers increases by more than the amount of the tax.

Question 2

In the above figure, curve b shows the

A) bottles of soda that people are willing to forgo to get another bicycle.
B) bottles of soda that people must forgo to get another bicycle.
C) benefits of producing more bicycles is greater than the benefits of producing more soda.
D) benefits of producing more soda is greater than the benefits of producing more bicycles.