Author Question: The elasticity of demand for chocolate chip cookies is 0.6 and the elasticity of supply for these ... (Read 162 times)

acc299 · **on:** Jun 29, 2018

The elasticity of demand for chocolate chip cookies is 0.6 and the elasticity of supply for these cookies is 1.9. If a tax is imposed on purchases of chocolate chip cookies, then the

A) consumers would pay more of the tax.
B) producers would pay more of the tax.
C) tax would be equally shared by the consumers and the producers.
D) consumers would pay the entire tax because their demand is less elastic than the producers' supply.

Question 2

The marginal product of labor is the

A) change in total product produced by hiring an additional unit of labor.
B) total revenue divided by units of labor.
C) extra revenue gained by selling one more unit of output produced by hiring additional units of labor.
D) extra revenue gained by employing one more unit of labor.