The first law of demand states that
a. the quantity demanded increases as price falls
b. the quantity demanded decreases as price falls
c. the quantity demanded increases as price increases
d. none of the above
a
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The term "market" refers to
A) physical structures only. B) locations where buyers and sellers physically meet. C) any arrangement that enables buyers and sellers to get information and trade with one another. D) trading arrangements that have been approved by the government.
Refer to the Article Summary. Colorado taxes marijuana with a 12.9% sales tax on buyers and a 15% wholesale excise tax on producers, which equates to 46 percent of the total taxes paid by retail buyers and 54 percent paid by producers
Does this necessarily mean that buyers will bear 46 percent of the burden of the tax and producers will bear 56 percent of the burden? A) Yes, the percentage of taxes paid by each group represents the burden of the tax. B) No, because consumers and producers always bear equal burdens of a tax. C) No, the burden of the tax will depend on the elasticity of demand and supply. D) No, the burden of a tax is always 100 percent on the consumer.