How do consumers react to a tax on an item with few or no substitutes?
a. They stop consuming the product.
b. They consume a bit less.
c. They consume considerably less.
d. They consume a bit more.
b. They consume a bit less.
Economics
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A firm has fixed costs
A) in the short run and in the long run. B) in the short run but not in the long run. C) in the long run but not in the short run. D) neither in the long run nor in the short run.
Economics
Explain how the market demand curve can be derived. Does the law of demand apply to the market demand curve?
What will be an ideal response?
Economics