If an excise tax is placed on a product that has a perfectly inelastic demand, then:
a. the entire tax will be paid by the consumer
b. the entire tax will be paid by the producer.
c. the consumer and producer will each pay a share of the tax.
d. the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply.
e. the tax is progressive.
a
Economics
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Prices and wages are considered "sticky" if
A) their rates of increase and decrease are identical. B) as prices increase, wages increase by the same percentage. C) their rates of change are directly connected to the rate of change in unemployment. D) they do not fully adjust to changes in demand and supply.
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Which of the following is not a barrier to entry?
A. Patents. B. X-inefficiency. C. Economies of scale. D. Ownership of essential resources.
Economics