If a huge percentage change in price leads to a small percentage change in quantity demanded, then demand is said to be inelastic

If a tax is levied on the sellers of a product, then the supply curve will

A. shift up. B. become flatter. C. shift down. D. not shift.

Many art galleries keep 60% of the sale price of a painting. However, art galleries do not typically pay the artist while the painting hangs on the wall. This form of contingency contract may be efficient if

A) the artist is less risk averse than the gallery. B) the gallery is less risk averse than the artist. C) the artist is unable to diversify across galleries or paintings. D) the gallery is unable to diversify across artists of paintings.