Question

4A

The price elasticity along a negatively sloped linear demand curve

1 changes at every point

2 is less than 1

3IS INFINITE

4 is equal to 1

5 is zero

28A

If demand curve is more elastic relative to supply

sellers pay a larger portion of the excise tax.

B.

consumer price increases by the amount of the tax.

C.

entire burden of the tax is borne by the sellers.

D.

sellers pay a smaller portion of the excise tax.

ESELLER BEAR EQUAL BURDEN

5 A

Observations on one variable taken across different businesses at the same point in time constitute a data set known as​ __________ data.

11A

Suppose the market supply curve is upward sloping. If the imposition of an excise tax causes no change in the

price consumers pay​,the​ good's demand curve must be

A.

perfectly elastic​,implying that the burden of the tax is entirely borne by producers.

B.

perfectly inelastic​,implying that the burden of the tax is entirely borne by producers.

C.

perfectly inelastic​,implying that the burden of the tax is shared equally by consumers and producers.

D.

perfectly elastic​,implying that the burden of the tax is entirely borne by customers

Answer 1

Answer optionc)a change atevery point

The price elasticity along a negatively sloped linear demand curveh changesat every point

With a downward-sloping demand curve, price and quantity demanded move in opposite directions, so the price elasticity of demand is always negative. A positive percentage change in price implies a negative percentage change in quantity demanded, and vice versa.

Answer )sellers pay a larger portion of the excise tax.

demand curve is more elastic relative to supplysellers pay a larger portion of the excise tax.