If the government wants to raise tax revenue and shift most of the tax burden to the consumers, it would impose a tax on a good with a:
A. flat (elastic) demand curve and a steep (inelastic) supply curve.
B. steep (inelastic) demand curve and a flat (elastic) supply curve.
C. steep (inelastic) demand curve and steep (inelastic) demand curve.
D. flat (elastic) demand curve and a flat (elastic) supply curve.
Answer: B
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If two bundles are on the same indifference curve, then
A) the consumer derives the same level of utility from each. B) the consumer derives the same level of ordinal utility from each but not the same level of cardinal utility. C) no comparison can be made between the two bundles since utility cannot really be measured. D) B and C.
The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are too willing to offer discounts b. the Vice President does not want to negotiate aggressively enough c. the sales staff want to negotiate too aggressively d. the Vice President is more willing to offer discounts to make the sale