Good A has a perfectly inelastic demand and an upward-sloping supply curve. Good B has a perfectly inelastic supply and a downward-sloping demand curve. If the same sales tax is imposed on the sellers of both good A and good B, the price paid by
A) buyers of good A rises by more than the price paid by buyers of good B.
B) buyers of good B rises by more than the price paid by buyers of good A.
C) buyers of good A rises by the same amount as the price paid by buyers of good B.
D) More information is needed to determine whether the price paid by buyers of good A rises by more than, less than, or the same amount as the price paid by buyers of good B.
A
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A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and decides to pay them per location opened. The company should expect to see
a. A large number of badly selected stores b. A large number of well selected stores c. A small number of well selected stores d. A small number of badly selected stores
Necessities and luxuries are both types of normal goods
a. True b. False