The more bidders there are at a second-price auction, a. the ...

[09madisonrousseau09]

The more bidders there are at a second-price auction,
 a. the higher the expected selling price
  b. the higher each bidder bids
  c. the more each bidder will shade his bid
  d. the less each bidder will shade his bid

Question 2

One way to minimize the excess burden 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.

[billybob123]

Answer to Question 1

a

Answer to Question 2

c