If the demand curve for a good is unit price elastic

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Chapter 27 / Exercise 36
Exploring Economics
Sexton
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12) If the demand curve for a good is unit price elastic and the supply curve is perfectly price elastic, a $1 specific tax imposed on the sellers of this good will A) shift the demand curve down vertically by $1. B) not raise price at all. C) shift the supply curve up vertically by $1. D) cause price to increase but by less than $1.
13) Which of the following is an example of an ad valorem tax?
14) Indifference curves that are thick violate
15) If the utility for two goods "x" and "y" is measured as U = x + y, then it can be concluded that
16) Joe's income is $500, the price of food (F) is $2 per unit, and the price of shelter (S) is $100. Which of the following represents his budget constraint? A) 500 = 2F + 100S B) 500 = 100F C) S = 500 - 2F D) All of the above. + 2S
17) If both prices decreases by 50%
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Chapter 27 / Exercise 36
Exploring Economics
Sexton
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B) slope of the budget constraint will increase. C) budget constraint will be unchanged. D) budget constraint will shift outward in a parallel fashion. 18) The consumer is in equilibrium when .

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