Suppose Tyler values a basketball at $20 . Jacqui values a basketball at $25 . The pre-tax price of a basketball $10 . The government imposes a tax of $5 on each basketball, and the price rises to $15 . The deadweight loss from the tax is

If the MPC = 0.75, the government spending multiplier would be

A) 0.25. B) -7.5. C) 4. D) 25.

In a perfectly competitive market buyers want to buy 20,000 units and sellers want to sell 20,000 units of a product when the price is $50 per unit. ABC Corporation, one seller in this market, 

A. will sell a fixed number of units regardless of how the price changes. B. faces a downward-sloping demand curve for its product. C. will maximize profit by selling at a price less than $50. D. faces a perfectly elastic demand curve at a price of $50.