Sometimes we tax sellers and sometimes we tax buyers, but this does not matter because a. sellers always bear the full burden of the tax. b. buyers always bear the full burden of the tax. c. buyers and sellers always share the burden of the tax. d. None of the above is correct; the incidence of the tax does depend on whether the buyers or the sellers are required to pay the tax. answer c To be binding, a price floor like the minimum wage must be set a. below the equilibrium price. b. above the equilibrium price. c. at the free-market price. d. either below or above equilibrium. answer a A price ceiling like rent controls encourages which of the following? a. Landlords to build more housing. b. Discrimination by landlords in terms of who to rent to. c. Landlords to spend extra money keeping the quality of housing high. d. A greater quantity of housing for consumers to enjoy. answer (I When thinking about the FICA tax that pays for Social Security and Medicare, labor economist have concluded that the supply of labor is a. more elastic than the demand, and, therefore, rms bear most of the burden of the payroll tax. b. less elastic than the demand, and, therefore, rms bear most of the burden of the payroll tax. c. more elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax. d. less elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax. answer it Selected answer Figure 1 Panel (a) Panel (b) price \"price 5 S D D .} quantity quantity Panel (c)