Suppose that wage contracts between workers and employers are based on an expected inflation rate of 3% and a 5% increase in money wages is agreed upon. If inflation actually equals 7%, real wages...

To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. The sports equipment consumers' share of this tax would be greater than that shown in the above figure

A) only if the demand was more elastic. B) only if the demand was more inelastic. C) only if the supply was more elastic. D) if either the demand was more inelastic or the supply more elastic.

If a 20 percent decrease in the price of chicken results in a 10 percent increase in the quantity demanded, the price elasticity of demand has a value of

a. 0.5 b. 2 c. 1 d. 0.1 e. none of these