Suppose the supply of apartments in Minneapolis is perfectly elastic. The effect of a $100 per month tax on all apartments is that
A) landlords pay none of the tax and there is a surplus of apartments.
B) landlords pay all of the tax and suffer all of the deadweight loss.
C) landlords pay all of the tax and no changes take place in the quantity of apartments supplied.
D) renters pay all of the tax.
E) the government collects no tax revenue because the supply is perfectly elastic.
D
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Which of the following would lead to a decrease of the U.S. demand for euros?
a. A decrease in the U.S. interest rate, with no change in the European interest rate b. An increase in U.S. GDP c. Resurgence of interest in European precision tools d. Expectations of a rise in the dollar price of the euro e. A sudden increase in anti- European sentiment.
If the balance of payments accounts of a country shows a current account deficit, it means that
A. the country's foreign assets are growing more quickly than its foreign liabilities. B. the country's exports are higher than its imports. C. the country's foreign assets are growing more slowly than its foreign liabilities. D. the country is acting as a net lender to the rest of the world.