Assume the Environmental Protection Agency imposes an excise tax on polluting firms. In which of the following situations would we expect the additional costs to be borne most heavily by consumers?
A. Demand is highly elastic and supply is highly inelastic.
B. Demand and supply are both highly elastic.
C. Demand and supply are both highly inelastic.
D. Demand is highly inelastic and supply is highly elastic.
Answer: D
Economics
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A monopoly, unlike a perfect competitor, has total control in its market because it is the single producer. Why, then, must a single-price monopoly decrease its price if it wants to increase its output?
What will be an ideal response?
Economics
Deregulation, especially for the transportation and telecommunication industries, was the trend in the United States during the:
a. 1930s. b. 1950s. c. 1970s. d. 1980s.
Economics