Suppose the demand for peaches from South Carolina is perfectly elastic. If the supply curve is upward sloping and a tax is imposed on peaches from South Carolina, then
A) peach sellers pay all of the tax.
B) peach buyers pay all of the tax.
C) peach buyers and sellers evenly split the tax.
D) the government does not collect any revenue from the tax.
E) the tax does not change the equilibrium quantity of peaches.
A
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Long-run aggregate supply will decrease for all of the following reasons EXCEPT
A) reduced money wages. B) decreased human capital. C) decrease in the level of full employment. D) decreased capital.
Demand deposits are
a. deposits held by individuals at one of the twelve Federal Reserve District Banks. b. interest-earning savings deposits held by individuals at a banking institution. c. deposits of commercial banks at one of the twelve Federal Reserve District Banks. d. deposits of individuals that can either be withdrawn or made payable on demand to a third party by a check.