Suppose the government wants to discourage the use of cigarettes. If it imposes a tax on cigarettes, the equilibrium quantity falls the most when the elasticity of demand equals

In the figure above, line A represents the

A) the line of market income distribution. B) line of equality. C) line of equal number of people in each household. D) line of equal consumption in each household.

Perfectly competitive firms are referred to as price takers because the individual firm is so small relative to the market that its output decisions will not have any effect on the market-determined price

Indicate whether the statement is true or false