The incidence of a per-unit tax on a good is identical for buyers and sellers of the good if:
A) the buyers and sellers of the good are equally sensitive to price changes.
B) the elasticity of market demand exceeds the elasticity of market supply.
C) the market supply curve is flatter than the market demand curve.
D) the market demand curve is horizontal.
A
Economics
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Since the demand for labor depends upon the demand for the final product, we say that labor is
A) a derived demand. B) an "inverse" demand. C) a positive demand. D) a reverse demand.
Economics
Sanjay is consuming X and Y so that he is spending his entire income and MUx/Px = 8 and MUy/Py = 14. To maximize utility, he should consume
A. the same amount of X and Y since he is already maximizing utility. B. less X and more Y. C. less of both X and Y. D. more X and less Y.
Economics