This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the demand curve for a product is horizontal and the supply curve is upward sloping. If a ... (Read 304 times)

anjilletteb

  • Hero Member
  • *****
  • Posts: 569
on: Jun 29, 2018
Suppose the demand curve for a product is horizontal and the supply curve is upward sloping. If a per-unit tax is imposed in the market for this product
 
  A) buyers bear the entire burden of the tax.
  B) the tax burden will be shared by buyers and sellers.
  C) the tax burden will be shared among the government, buyers, and sellers.
  D) sellers bear the entire burden of the tax.

Question 2

Suppose in Belgium, the opportunity cost of producing a trombone is 8 clarinets. In Denmark, the opportunity cost of producing a trombone is 6 clarinets.
 
  a. What is the opportunity cost of producing a clarinet for Belgium?
  b. What is the opportunity cost of producing a clarinet for Denmark?
  c. Which country has a comparative advantage in the production of clarinets?
  d. Which country has a comparative advantage in the production of trombones?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Missbam101

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

a. For Belgium, the opportunity cost of producing a clarinet is 1/8 of a trombone.
b. For Denmark, the opportunity cost of producing a clarinet is 1/6 of a trombone.
c. Belgium has a comparative advantage in the production of clarinets.
d. Denmark has a comparative advantage in the production of trombones.


anjilletteb

  • Member
  • Posts: 569
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

hramirez205

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ... A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ...
An upward-sloping spark line usually indicates a mechanical engine problem or a lean air–fuel ... An upward-sloping spark line usually indicates a mechanical engine problem or a lean air–fuel ...
The population of Asia increases rapidly, the demand for food and water is also growing The population of Asia increases rapidly, the demand for food and water is also growing
The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur
The original Supply and Demand graph The original Supply and Demand graph
A bulldozer attempts to drag a log weighing 500 N along the rough horizontal ground. The cable ... A bulldozer attempts to drag a log weighing 500 N along the rough horizontal ground. The cable ...
Video: HIV Infection: Viral life cycle

For a complete list of videos, visit our video library