Legislators are indifferent about placing a unit tax on the suppliers of a good or the demanders. If a tax is placed on the suppliers of the good _____
a. suppliers will pay the entire tax
b. suppliers will pay more than if the tax were initially placed on the demanders
c. suppliers will pay exactly what they would pay if the tax were initially placed on the demanders
d. suppliers will pay less than if the tax were initially placed on the demanders
c
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You may consume ice cream or frozen yogurt, and ice cream consumption is plotted along the horizontal axis of your indifference map. The prices are denoted PY for frozen yogurt and PIC for ice cream
Under what condition will you only consume frozen yogurt? A) MRS is greater than PIC/PY B) MRS is less than PIC/PY C) MRS is less than PY/PIC D) MRS is infinite
The degree of monopsony power that a firm enjoys is determined by
A) elasticity of market demand, elasticity of market supply, and number of buyers in the market. B) elasticity of market supply, number of buyers in the market, and how buyers interact. C) number of buyers in the market, how buyers interact, and number of sellers of the resource. D) how buyers interact, number of sellers of the resource, and elasticity of market demand.