The less elastic the supply, the
A) less likely the government is to tax the product.
B) less likely the government is to impose a price ceiling.
C) larger the fraction of any tax imposed on the product that is paid by the suppliers.
D) less elastic the demand.
C
Economics
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A tax on a previously untaxed monopoly-produced good will necessarily lower total welfare if
A) the demand curve is relatively inelastic. B) the demand curve is relatively elastic. C) less than the socially optimum is produced before the tax. D) more than the socially optimum is produced before the tax.
Economics
Which of the following will increase macroeconomic equilibrium prices?
A. a decrease in government spending B. a decrease in productivity C. a decrease in input prices D. an increase in taxes
Economics