The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.  

If a tax is imposed on a market with inelastic demand and elastic supply, then

A. it is impossible to determine how the burden of the tax will be shared. B. sellers will bear most of the burden of the tax. C. the burden of the tax will be shared equally between buyers and sellers. D. buyers will bear most of the burden of the tax.

Which of the following is true at each output level for a perfectly competitive firm?

a. MC = AVC = ATC b. MR = MC c. P > AVC d. AR = MR = P e. MR = AR = MC