Ceteris paribus, if the demand curve for milk is inelastic and the government decides to impose a tax on it, there is going to be a relatively ________ price hike to eliminate the excess ________ caused by the tax.

Consumers often purchase products that, afterward, they regret purchasing. This can be explained by

A) consumers trying products to determine if their consumer surplus increases. B) consumers trying products to determine if firm advertising is honest. C) consumers trying to minimize expenditures. D) consumers trying to maximize choice.

A subsidy on a product will generate more actual benefit for producers (and less for consumers) when

a. the supply of the product is relatively inelastic. b. the supply of the product is relatively elastic. c. the demand for the product is relatively inelastic. d. either b or c is true