Assume that the graphs show a competitive market referenced in the question below.
Select the graph that best shows the change in the market following a tax placed on the buyers in the market.
A. graph (1)
B. graph (2)
C. graph (3)
D. graph (4)
Answer: B
Economics
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Is it possible for sellers to benefit more than consumers from a subsidy to buyers?
A. Yes, if the sellers need it more. B. Yes, if the supply curve is relatively less elastic than the demand curve. C. Yes, if the supply curve is relatively more elastic than the demand curve. D. Producers can never benefit more than buyers from a subsidy to buyers.
Economics
The minimum price the firm would accept in the long run would be
A. $25.
B. $50.
C. $70.
D. $80.
Economics