Neither the demand nor the supply of sugar is perfectly elastic or inelastic. If the government imposes a 5 percent tax on sugar, the
A) price of sugar buyers pay falls by 5 percent.
B) price of sugar buyers pay increases by less then 5 percent.
C) price of sugar buyers pay does not change.
D) quantity of sugar increases.
E) price of sugar buyers pay rises by 5 percent.
B
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In the long run, advertising by all firms in a monopolistically competitive industry
A) increases all firms' demand. B) decreases all firms' demand. C) lowers all firms' costs. D) might increase or decrease the firms' prices. E) lowers all firms' prices.
All of the following are key features of the federal government's new national health care program EXCEPT
A) people must either purchase health insurance or pay a fine to the federal government. B) a young person in good health can opt not to purchase health insurance without penalty. C) firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance. D) government-directed exchanges will assist in matching individuals and small businesses with health insurance policies that satisfy government requirements.