As the manager of good A, which of the following would be of greatest concern (based on the regression results above)?
A) None of the factors below would be of concern.
B) an impending recession
C) pressure on you by your salespersons to lower the price so that they can boost their sales
D) a price reduction by the makers of good B
Question 2
The above figure shows the demand and cost curves facing a monopoly. If a 100 per unit tax is charged, what is the incidence of the tax on consumers?
A) 100
B) 50
C) 25
D) 0
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