Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced
A) an increase in the quantity supplied. B) a decrease in supply.
C) a decrease in the quantity supplied. D) an increase in supply.
B
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The demand curve shown in the figure above reflects demand that is
A) perfectly elastic. B) perfectly inelastic. C) unit elastic. D) elastic but not perfectly elastic. E) inelastic but not perfectly inelastic.
Economists argue that the corporate income tax is an example of a tax with a high deadweight loss because
A) it encourages corporations to seek ways to evade taxes. B) taxing a corporation's income amounts to double taxing the earnings on individual shareholders' investments in corporations. C) some of the burden of the tax is passed on to consumers in the form of higher prices. D) it discourages corporations from undertaking capital investments to enhance market competitiveness.