When demand for a product is very inelastic, the burden of a tax falls mainly on
a. producers.
b. consumers.
c. tax collectors.
d. people who drop out of the market.
b
Economics
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If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then: a. excess demand exists
b. excess supply exists. c. price will rise. d. price will fall. e. the market is in equilibrium.
Economics
Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's price will exceed its marginal cost by ____ and its average total cost by ____.
A. $20; $27.33
B. $10; $10.40
C. $24; $27.33
D. $30; $20.50
Economics