Which of the following conditions must hold in the equilibrium of ...

[Cooldude101]

Which of the following conditions must hold in the equilibrium of a competitive market where the government puts a specific tax on consumers?
 
  A) The quantity sold and the price paid by the buyer must lie on the demand curve.
  B) The quantity sold and the seller's price must lie on the supply curve.
  C) The quantity demanded must equal the quantity supplied.
  D) the difference between the price the buyer pays and the price the seller receives must equal the specific tax.
  E) all of the above

Question 2

See the information in Scenario 4.4. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the income elasticity of demand?
 
  A) 0
  B) 5/9
  C) 1
  D) 9/5
  E) none of the above

[laurnthompson]

Answer to Question 1

E

Answer to Question 2

E