Regardless of how price inelastic the supply curve, tax revenue from a per-unit tax rises the more price inelastic the demand curve is.
Answer the following statement true (T) or false (F)
True
Rationale: The more price inelastic either curve, the more tax revenue will be raised because the smaller will be the reduction in the quantity transacted.
Economics
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Specialization in production is economically beneficial primarily because it:
A. allows everyone to have a job that he or she likes. B. permits the production of a larger output with fixed amounts of resources. C. facilitates trade by bartering. D. guarantees full employment.
Economics
The income and substitution effects account for:
A. the upward-sloping supply curve. B. the downward-sloping demand curve. C. movements along a given supply curve. D. shifts in the demand curve.
Economics