Unformatted text preview: demand. ** C. Equal the higher coal-fired plant price no matter how large customer demand. D. Equal the marginal cost of electricity at the plant that supplies them. 3. Buyers are likely to bear a higher burden from a tax on a good when… A. The good is produced with highly mobile inputs. ** B. Good substitutes for the good exist. C. It takes a long time to change the quantity supplied of the good. D. The demand for the good is highly elastic. 4. Sellers are more likely to bear the burden of a tax imposed on ____ because ____. A. Tobacco products, because demand is highly inelastic. B. Tobacco products, because farmers can easily switch to other crops. C. Imported oranges, because domestic oranges are good substitutes. ** D. Imported oranges, because citrus growers can easily switch to other crops....
View Full Document
This note was uploaded on 07/28/2008 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07