Category: Prices, Wages & Taxes

A. falls more heavily on sellers
B. falls entirely on sellers
C. falls more heavily on buyers.
D. is evenly distributed between buyers and sellers.

A. demand is inelastic and supply in elastic
B. supply is inelastic, and demand is elastic
C. both supply and demand are elastic
D. both supply and demand are inelastic

A. supply curve downward by the size of the tax per unit.
B. Supply curve upward by the size of the tax per unit
C. demand curve upward by the size of the tax per unit.
D. demand curve downward by the size of the tax per unit

A. the buyers
B. Neither buyers nor sellers desire a price floor.
C. the sellers
D. Both buyers and sellers desire a price floor.

A. both supply and demand are elastic
B. both supply and demand are inelastic
C. demand is inelastic and supply in elastic
D. demand is elastic, and supply is inelastic

A. A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.
B. A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint.
C. There will be a shortage of petrol
D. There will be surplus of petrol

A. the minimum wage
B. rent controls
C. restricting petrol prices to Rs100 per litre when the equilibrium price is Rs150 per litre
D. All of these answers are price floors

A. The tax burden generated from a tax placed on a good consumer perceive to be a necessity will fall most heavily on the sellers of the good
B. The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected
C. The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation.
D. The tax burden falls most heavily on the side of the market (buyers and sellers) that is most willing to leave the market when price movements are unfavorable to them.

A. a decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold
B. an increase in the price buyers pay a decrease in the price sellers receive, and an increase in the quantity sold
C. a decrease in the price buyers pay, an increase in the price sellers receive and an increase in the quantity sold
D. an increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold

A. both supply and demand are inelastic
B. demand is elastic, and supply are inelastic
C. both supply and demand are elastic
D. demand is inelastic, and supply is elastic