Question
14) The supply of roses is unit elastic and the demand for roses is elastic. If a tax is imposed on roses, who pays a
14) The supply of roses is unit elastic and the demand for roses is elastic. If a tax is imposed on roses, who pays a larger part of the tax? A) Demanders pay a larger part of the tax. B) Suppliers pay a larger part of the tax. C) Demanders and suppliers pay equal amounts of the tax. D) More information is needed about whether the tax is imposed on buyers or sellers. E) More information is needed about the magnitude of the tax to determine if demanders or suppliers pay a larger part of a tax. 15) If a perfectly competitive market becomes a monopoly, then the producer ____ and consumers ____. A) is unaffected; are unaffected B) is unaffected; lose C) gains; gain D) gains; lose E) gains; are unaffected
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