The above figure shows the demand and cost curves facing a monopoly. If a $100 per unit tax is charged, what is the incidence of the tax on consumers?

The classical dichotomy states that

A) money is superneutral. B) goods markets are separated from labor markets. C) demand is separate from supply. D) real markets determine nominal outcomes, not the reverse.

If the labor supply curve is very elastic, a tax on labor

a. has a large deadweight loss. b. raises enough tax revenue to offset the loss in welfare. c. has a relatively small impact on the number of hours that workers choose to work. d. results in a large tax burden on the firms that hire labor.