Who will bear the burden of a $0.05 tax placed on soda suppliers (consumer or seller) in a soda market where Qd = 225-10P and Qs = 50 + 15P?
A) Consumers pay $0.30 of the tax, bearing the burden.
B) Consumers pay $0.25 of the tax, bearing the burden.
C) Sellers pay $0.20 of the tax and bear the burden.
D) Sellers pay all of the tax and bear the burden.
A
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If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate, the decision-makers have escaped
a. the Folk Theorem b. the law of large numbers c. the Prisoner's dilemma d. the paradox of large numbers e. the strategy of recusal
If the market for beef cattle was initially in equilibrium, an increase in the price of the feed grains used to fatten cattle would cause
a. the demand for beef cattle to increase, driving the price of beef upward b. the supply of beef cattle to decline, driving the price of beef upward in the long run c. the supply of beef to increase, placing downward pressure on the price of beef in the long run d. both supply and demand to fall, leaving the price of beef virtually unchanged e. the supply of beef to increase, driving the price of beef down and increasing demand