A tax
a. lowers the price buyers pay and raises the price sellers receive.
b. raises the price buyers pay and lowers the price sellers receive.
c. places a wedge between the price buyers pay and the price sellers receive.
d. Both b) and c) are correct.
d
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As new substitutes for office productivity software are developed, the demand for workers in office productivity software production should
A) become more elastic. B) become less elastic. C) be unchanged. D) change in an undetermined way.
Refer the above figure. An increase in labor productivity is likely to stimulate and shift the labor demand curve to
A) the right and hence increase union wages per year. B) to the left and hence increase union wages per year. C) the right and hence lower union wages per year. D) None of the above is likely to happen.