A good has a downward-sloping demand curve and a perfectly elastic supply. Imposing a sales tax of 1 per unit on the sellers of the good
A) raises the price paid by demanders by more than 1.00.
B) raises the price paid by demanders by 1.00.
C) raises the price paid by demanders by less than 1.00.
D) does not change the price paid by demanders.
Question 2
Based on the table above which shows Chip's costs, if rice sells for 600 a ton, Chip
A) makes an economic profit and should stay open in the short run.
B) makes an economic profit, but should shut down in the short run.
C) incurs an economic loss, but should stay open in the short run.
D) incurs an economic loss and should shut down in the short run.
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