On Green Island, the demand for pencils is perfectly elastic and the supply of pencils is perfectly inelastic. If a sales tax on pencils is introduced
A) the tax is split evenly between the buyers and sellers.
B) the buyers pay the entire tax.
C) no one pays the tax.
D) the sellers pay the entire tax.
D
Economics
You might also like to view...
If higher inflation is expected in the future, then the
A) SAS curve shifts rightward. B) AD curve shifts rightward. C) LAS curve shifts rightward. D) None of the above answers is correct.
Economics
In the above figure, the long-run average cost curve exhibits economies of scale
A) between 5 and 10 units per hour. B) between 10 and 20 units per hour. C) between 20 and 25 units per hour. D) along the entire curve.
Economics