1. Which of the following is? true?
A.The elasticity of demand varies along most demand curves.
B.The elasticity of demand varies only along? downward-sloping linear demand curves.
C.The elasticity of demand is constant along most demand curves.
D.None of the above.
2. Which of the following is? true?
A.When ε<−?1,demand is considered elastic.
B.When−1<εl ≤?0,demand is considered inelastic.
C.When ε?=−?1,demand is considered unitary elastic.
D.All of the above.
E.None of the above.
3. Which of the following statements is? true?
A.The equilibrium price after a specific tax will be the same whether the tax is collected from consumers or producers.
B.The equilibrium price after a specific tax will depend on whether the tax is collected from consumers or producers.
C.The tax incidence on consumers will be higher if the tax is collected from consumers.
D.The tax incidence on producers will be higher if the tax is collected from producers.
4. Which of the following statements is? true?
A.More tax revenue is raised if a tax is collected from consumers.
B.More tax revenue is raised if a tax is collected from producers.
C.More tax revenue is raised if a tax is collected from both consumers and producers.
D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers.
E.There is no way to identify with any certainty the collection conditions under which more tax revenue will be raised.