The more elastic the demand for a good, the
A) less a sales tax lowers the price paid by buyers.
B) more a sales tax lowers the price paid by buyers.
C) less a sales tax raises the price paid by buyers.
D) more a sales tax raises the price paid by buyers.
C
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The figure above shows the competitive market for slices of key lime pie. If the production is 40 slices per day, someone is willing to buy another slice of pie for
A) more than it costs to produce the slice. B) less than it costs to produce the slice. C) an amount equal to the cost of producing the slice. D) an amount equal to the cost of producing all 40 slices. E) an amount that is not comparable to the cost of producing the slice.
Evan knows his GPA would skyrocket if he could break his horrible habit of procrastinating. An example of a commitment device Evan could use would be:
A. to allow himself one hour of leisure for every half-hour of studying he does each day. B. to pay a student to meet him each afternoon for 2 hours in the library to ensure he studies every day. C. to exercise before studying in order to be refreshed. D. All of these are commitment devices.