A tax on the sellers of cameras encourages
A. sellers to supply a smaller quantity at every price.
B. buyers to demand a smaller quantity at every price.
C. sellers to supply a larger quantity at every price.
D. Both A) and B) are correct.
A. sellers to supply a smaller quantity at every price.
You might also like to view...
Hold-up can only occur if
a. Costs are fixed b. Costs are sunk c. Costs are avoidable d. Costs are incurred
If the demand for a good is very price elastic, the imposition of a tax on that good
a. places the largest portion of the burden on the sellers of that product b. places the burden of the tax equally on buyers and sellers c. places the largest portion of the tax on consumers d. will make demand more elastic than it was before the tax e. will make demand more inelastic than it was before the tax