A U-shaped curve has a positive slope everywhere

A price index is the

A) cost of a market basket of goods today. B) cost of a market basket of goods and services a year ago expressed as a percentage of the cost of the same market basket today. C) cost of a market basket of goods and services today expressed as a percentage of the cost of the same market basket during a base year. D) year that is chosen as the point of reference for comparison of prices in other years.

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.