If grocery stores were legally required to charge a 10-cent fee for disposable grocery bags, who would bear the largest burden of this fee?
What will be an ideal response?
Since consumers need groceries and would most likely continue to purchase them (and the bags to carry them home) even with the 10-cent bag fee, the demand for disposable bags is likely to be relatively inelastic. With an inelastic demand, the consumer would bear the largest burden of the bag fee.
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We may not be able to predict the outcome of a two-player game when
a. each player follows a strategy that negates the strategy of the other player b. price exceeds marginal cost c. neither player has a subsistence strategy d. neither player has a dominant strategy e. at least one player has a bilateral strategy
Frictional unemployment occurs when: a. a recent graduate is searching for his first job
b. a ski instructor is looking for a part-time job during summer. c. an engineer is looking for a new job after a recession. d. a stenographer is looking for a new job as his skills have become obsolete in the current labor market.