The Bureau of Economic Analysis estimates the size of the underground economy but many economists believe that the estimates are too low

What does a perfectly competitive firm do to maximize profits?

What will be an ideal response?

Suppose that an ad valorem tax of 10% is imposed on consumers of butter. The bread market supply is Qs = 10 + P and the bread market demand is Qd = 220-P. What is the consumers' tax burden?

A) Consumers' tax burden is $3. B) Consumers' tax burden is $10 C) Consumers' tax burden is $5. D) Consumers' tax burden is $2.