If the producers bear a larger portion of tax incidence than the buyers, which of the following must be true?
A. They are not as business savvy as the buyers.
B. Their supply curve must be more inelastic than the buyers demand curve.
C. They face a very inelastic demand.
D. Their supply curve must be more elastic than the buyers demand curve.
B. Their supply curve must be more inelastic than the buyers demand curve.
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Refer to Figure 7-3. On the above graph, identify the market equilibrium price and quantity, the efficient equilibrium price and quantity, and the value of the deadweight loss resulting from too few people receiving vaccinations
What will be an ideal response?
During a recession, higher welfare outlays:
a. increase the size of the budget deficit even if the government does not undertake discretionary fiscal policy. b. decrease the size of the budget deficit regardless of the government's discretionary fiscal policy c. increase the size of the budget deficit only if the government undertakes discretionary fiscal policy. d. decrease the size of the budget deficit only if the government undertakes discretionary fiscal policy. e. have the same effect on the budget deficit as they do in times of expansion.