Can the incidence of a sales tax ever be so that buyers pay all of the tax or so that sellers pay all of the tax?
What will be an ideal response?
Yes, each is possible. If demand is perfectly price inelastic, for example in the case of an extreme necessity, the tax will be paid entirely by the buyer. If supply is perfectly inelastic, for example in the case of the momentary supply curve, the tax will be paid entirely by the seller.
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Roughly speaking, peak-load pricing makes users at peak times pay for capacity while users at off-peak times pay only for operating cost
Indicate whether the statement is true or false
Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the unemployment rate? a. It would increase
b. It would fall. c. It would change, but the effect cannot be predicted. d. It would not change.