Author Question: Per-unit transaction costs a. may cause the demand and supply curves to shift either inward or ... (Read 18 times)

maegan_martin · **on:** Jul 1, 2018

Per-unit transaction costs
a. may cause the demand and supply curves to shift either inward or outward depending on the value obtained from transaction agents.
b. refer only to the commission paid to a third party for each transaction made.
c. are absorbed by the party seeking the transaction.
d. have the same effect on behavior as do lump-sum transaction costs; the difference in terminology is purely definitional.

Question 2

One way to minimize the deadweight loss resulting from a specific tax is to
a. tax only wealthy firms and individuals.
b. spread the tax over many goods and services.
c. tax goods for which either supply or demand is inelastic.
d. tax luxury items such as yachts and sports cars.