Suppose that the demand for digital cameras is elastic, and the supply of digital cameras is inelastic. A tax of $20 per camera levied on digital cameras will decrease the effective price received by sellers of digital cameras by

a. less than $10.
b. $10.
c. between $10 and $20.
d. $20.

Economics

Community Advisory Council (CAC).

What will be an ideal response?

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Economics

The opportunity cost of holding money balances increases when:

a. the inflation rate decreases. b. the interest rate increases. c. the interest rate decreases. d. GDP is far from full employment.

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Economics