In the figure above, if an excise tax is imposed that generates an efficient allocation of resources, then the amount of output will be

If a tax is imposed on buyers in a market in which supply is perfectly inelastic, the

A) buyers pay the entire tax. B) sellers pay the entire tax. C) buyers and the sellers both pay a portion of the tax. D) neither the buyers nor the sellers pay the tax.

If there is a shortage in the market for athletic shoes,

a. the price should rise to eliminate the shortage b. inventories of athletic shoes will grow c. demand will decrease to restore equilibrium d. firms will reduce production to restore equilibrium e. supply will increase to restore equilibrium