Consumers pay 100 of a new sales tax on a good a

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Chapter 16 / Exercise 3
Exploring Economics
Sexton
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40) Consumers pay 100% of a new sales tax on a good:A) always.B) when demand is perfectly elastic.C) when the demand is perfectly inelastic.D) never as the tax is on the seller.
40)41) Which of the following statements about elasticity of demand is correct?
41)42) Which of the following goods would most likely have the most inelastic demand?
42)43) If at a price of $100, 10 units were sold while at a price of $125, eight units were sold, the priceelasticity of demand value using the midpoint formula is:
43)44) If at a price of $50, 20 units are sold and at a price of $60, 0 units are sold, the price elasticity ofdemand of the good is:A) perfectly inelastic.B) perfectly elastic.C) unit elastic.D) elastic.
44)45) When demand is price elastic, a fall in price causes total revenue to rise because:
45)46) If the cross-price elasticity of demand for goods A and B is a positive value, this means the twogoods are:
46)47) If you expect the economy is going to boom and average income in the economy will rise in theforeseeable future, the type of firm that would be able to increase its sales if your expectations aremet is:
47)8
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Exploring Economics
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Chapter 16 / Exercise 3
Exploring Economics
Sexton
Expert Verified
48) An external cost is created when you:A) graduate from college.B) buy a sandwich for lunch.C) litter on the side of the road.D) buy flowers for your mother on Motherʹs Day.
48)49) Because producers do not bear the external cost of pollution:
49)Refer to Figure 5.1 for the questions below.Figure 5.150) An efficient way to get the firm in figure 5.1 to produce what society wants is:
50)9
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