Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect the total revenues the restaurant earns to:

In the above figure, the tax incidence is

A) that most of it is paid by the buyers. B) that most of it is paid by the sellers. C) split equally so that the buyers and sellers pay the same amount. D) that neither the buyers nor the sellers pay it.

When applying for a loan, a borrower tends to know more about her ability to pay it back than does the bank. This is an example of

a. perfect information b. moral hazard c. a low marginal benefit of information for the bank d. asymmetric information e. optimal search