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Figure 6-25 10 price .....: 8 +.. ...A.... ID D after tak 10 20 30 40 50 60 70 80 quantity Refer to Figure 6-25.
Figure 6-25 10 price .....: 8 +.. ...A.... ID D after tak 10 20 30 40 50 60 70 80 quantity Refer to Figure 6-25. Suppose the same supply and demand curves apply, and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the government. After the sellers are required to pay the tax, relative to the case depicted in the graph, the burden on buyers will be O A. larger, and the burden on sellers will be smaller. O B. smaller, and the burden on sellers will be larger. O C. the same, and the burden on sellers will be the same. O D. The relative burdens in the two cases cannot be determined without further information.You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired at several times your college income. Your roommate still enjoys Ramen noodles very much and buys even more, but you plan to buy fewer Ramen noodles in favor of foods you prefer more. When looking at income elasticity of demand for Ramen noodles, yours would O A. be negative and your roommate's would be positive. B. be positive and your roommate's would be negative. C. be zero and your roommate's would approach infinity. O D. approach infinity and your roommate's would be zero
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