When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic,
a. buyers of the good will incur most of the burden of the tax
b. sellers of the good will incur most of the burden of the tax.
c. buyers and sellers will each incur 50 percent of the burden of the tax.
d. the equilibrium quantity will increase.
a
Economics
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The best way to address differences in labor and environmental standards is through trade barriers
Indicate whether the statement is true or false
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If supply decreases and demand increases, then the equilibrium
a. price will decrease and quantity will increase b. price will increase and quantity will decrease c. price will increase and quantity could increase, decrease, or remain the same d. price could increase, decrease, or remain the same and quantity will increase e. price will increase, decrease, or remain the same and quantity will decrease
Economics