For a given elasticity of demand, the less elastic the supply, the
A) larger the deadweight loss from a tax.
B) larger the share of a tax paid by the sellers.
C) greater the burden on the government from a tax.
D) greater is the excess burden from a tax.
E) larger the share of a tax paid by the buyers.
B
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The figure above shows the market for pizza
a) If the price of a slice of pizza is $3, what is the consumer surplus of the 50th slice? b) If the price of a slice of pizza is $3, what is the producer surplus of the 50th slice? c) What is the efficient quantity? What is the equilibrium quantity? What is the deadweight loss when the equilibrium quantity is produced?
In recent years, the world demand curve for copper shifted rightward due to continued economic growth in China and other emerging economies. Also, the costs of extracting the copper increased due to higher energy prices. As a result, we observed:
A) higher equilibrium copper prices and unambiguously lower quantities. B) higher equilibrium copper prices and unambiguously higher quantities. C) higher equilibrium copper prices and either higher or lower quantities. D) lower equilibrium copper prices and either higher or lower quantities.