If an excise tax is imposed on shirts,
a. the number of shirts produced will exceed the number demanded
b. the number of shirts demanded will exceed the number supplied
c. the equilibrium market price will decrease
d. the amount consumers pay for each shirt will decrease
e. the net revenue producers receive from each shirt will decrease
E
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The endogenous variable in the aggregate supply curve is ________
A) output B) the real interest rate C) inflation D) planned expenditure E) none of the above
If the short run elasticity of demand for widgets is 0.4 and the long run elasticity of demand for widgets is 0.95, a decrease in price will ____ total revenue in the short run and ____ total revenue in the long run. a. Increase; increase
b. Increase; decrease. c. Decrease; increase. d. Decrease; decrease.