If a country has the comparative advantage in producing a product, then that country must also have the absolute advantage in producing that product

The demand for salt is inelastic, and the supply of salt is elastic. The demand for caviar is elastic, and the supply of caviar is inelastic. Suppose that a tax of $1 per pound is levied on the sellers of salt, and a tax of $1 per pound is levied on the buyers of caviar. We would expect that most of the burden of these taxes will fall on

a. sellers of salt and the buyers of caviar. b. sellers of salt and the sellers of caviar. c. buyers of salt and the sellers of caviar. d. buyers of salt and the buyers of caviar.

Refer to the graph shown. An expansionary fiscal policy would be most appropriate when the economy is at point:

A. E. B. B. C. C. D. D.