The IS curve shows that higher income levels require ________ interest rates to ensure that income equals ________

Suppose the elasticity of demand for a product is 0 and elasticity of supply is 1. If the government imposes a tax on the product, then

A) buyers and sellers pay exactly the same share of the tax. B) buyers pay all of the tax. C) sellers pay all of the tax. D) buyers pay a smaller share of the tax than do sellers, but both buyers and sellers pay some of the tax. E) because the elasticity of demand is zero, the government collects no revenue from this tax.

Refer to Scenario 2.1. What is the equilibrium price of books?

A) 5 B) 10 C) 15 D) 20 E) none of the above