An 18 percent increase in the price of small cars results in a 10 percent expansion in the quantity supplied. The supply elasticity in this range equals ________

The more elastic the demand curve, _____

a. the smaller the proportion of a tax paid by the suppliers b. the smaller the proportion of a tax paid by the demanders c. the more elastic the supply curve d. the more the tax can be shifted to demanders

Access the document prepared by the U.S. Census Bureau, Pollution Abatement Costs and Expenditures: 2005, available online at www.census.gov/prod/2008pubs/ma200-05.pdf.Examine the state-level data for total capital and operating abatement costs. Analyze the differences amongany subset of states, and offer a hypothesis as to why these differences might exist.

What will be an ideal response?