Author Question: The government imposes a sales tax on hot dogs. The tax would be paid entirely by the hot dog buyers ... (Read 57 times)

luvbio · **on:** Jun 29, 2018

The government imposes a sales tax on hot dogs. The tax would be paid entirely by the hot dog buyers if the

A) supply is perfectly elastic.
B) supply is perfectly inelastic.
C) demand is perfectly elastic.
D) None of the above answers is correct.

Question 2

The table above gives Cathy's total utility from Mt. Dew. If the price of a Mt. Dew is 2, Cathy's marginal utility per dollar from the 3rd Mt. Dew is ________ units per dollar

A) 20
B) 10
C) 32.5
D) 40