When corporate income taxes are increased on competitive ...

[V@ndy87]

When corporate income taxes are increased on competitive industries, the increase _____.
 
  a. will have the largest effect on firms with elastic demands
  b. will have the largest effect on firms with inelastic demands
  c. will be evenly distributed between stockholders and customers
   d. will have zero effect

Question 2

Which of the following is not a potential problem in using corrective taxation to deal with a negative externality?
 
  a. Measuring the cost of the externality.
  b. Estimating the supply curve of the externality creator.
  c. Determining who is responsible for the externality.
   d. Determining how the tax should be applied.

[bpool94]

Answer to Question 1

a

Answer to Question 2

b

[V@ndy87]

Thank you

[bpool94]

No problemo