The more elastic the demand curve, the smaller is the deadweight loss resulting from the imposition of a tax

In a simple economy (no government sector), the equilibrium level of GDP will be less than the full employment level of income if, at the full employment level of income, the

a. saving that consumers want to do is less than investing that businesses want to do. b. saving that consumers want to do is greater than investing that businesses want to do. c. saving that consumers want to do is less than spending that consumers want to do. d. inventories are being depleted.

Marginal revenue is equal to price for a perfectly competitive firm because:

A. total revenue increases by the price of the good when an additional unit is sold. B. total revenue increases by less than the price of the good when an additional unit is sold. C. firms need to lower price to increase the quantity sold. D. firms can increase price and still increase the quantity sold.