Mr. Smith earns $100,000 per year. Each year he spends $50,000 and saves $50,000. He pays a 5 percent sales tax on all of his spending. Assuming the sales tax is the only tax he pays, his average tax rate out of his income is

If an upstream monopoly and a downstream monopoly vertically integrate into a profit-maximizing monopoly, then the total amount of deadweight loss in the industry

A) will increase. B) will decrease. C) will remain unchanged. D) cannot be determined.

If demand for a seller's product is elastic, a price increase will decrease total revenue

a. True b. False Indicate whether the statement is true or false