Q#1: Which of the following is a correct statement about tax incidence?

- Consumers share less of the tax burden if the tax is imposed on producers rather than consumers

- Consumers share more of the tax burden in the market as the supply curve becomes more inelastic

- Consumers share more of the tax burden in the market as the demand curve becomes more inelastic

- Consumers share more of the tax burden if the tax is imposed on consumers than than producers

Q#2: The university president believes that increasing student tuition by 5% will increase revenues. If the president is correct that revenues will increase, then the tuition increase will:

- Reduce the number of students enrolling by less than 5%

- Reduce the number of students enrolling by more than 5%

- Reduce the number of students enrolling by exactly 5%

- Increase the number of students enrolling by 5%

Q#3: Suppose the price elasticity of demand for tuna equals 1.5 in Ontario and 0.63 in British Columbia. To increase revenue, tuna producers should:

- Lower prices in each province

- Raise prices in each province

- Lower prices in Ontario and raise prices in British Columbia

- Lower prices in British Columbia and raise prices in Ontario

Q#4: As a result of a shift in demand curve the percentage change in equilibrium price is lower than the percentage change in equilibrium quantity. This implies that supply is:

- Elastic

- Inelastic

- Unit elastic

- Not enough information to answer