1.The incidence of as sales tax will be more on the buyers of the product if  

a.. the price elasticity of demand is low

the income elasticity of demand is low 

the price elasticity of demand is high 

the cross elasticity of demand is high 

 

2. The incidence of a sales tax is most likely on the 

buyers

sellers 

equally amongst both of them

the distributor

 

3. An “optimal tariff” is a tax on imported goods which have a high

price elasticity of demand 

price elasticity of supply 

income elasticity of demand 

cross elasticity of demand 

 

4. If there is a rent supplement program: 

rents will rise 

the quantity of apartments available will fall 

landlords will be hurt 

none of the above

 

5. If there is a building subsidy program, 

rents will rise 

the quantity of apartments available will rise 

landlords will be hurt 

none of the above

 

6. In the case of agriculture, the demand for grain products is likely to be 

relatively elastic  

relatively inelastic 

perfectly elastic 

none of the above

 

7. In the case of agriculture, the supply of grain products is likely to be 

relatively elastic 

relatively inelastic 

perfectly elastic 

unitary elastic

 

 

 

8. In the case of agriculture, 

the demand has shifted to the right more than the supply has shifted to the right 

the demand has shifted to the right less than the supply has shifted to the right 

the demand has shifted to the left more than the supply has shifted to the left 

the demand has shifted to the left less than the supply has shifted to the left

 

9. Because of what happened in question 8, the prices of grain products have  a. rise

falle

stayed the same

none of the above

 

 10. The market is telling farmers to 

produce more 

expand their farms 

leave farming 

wait for better days