1. In a market, the equilibrium condition is given by the following:
A. quantity demanded = quantity supplied
B. quantity demanded, quantity supplied
C. quantity demanded/quantity supplied
D. price quantity demanded = quantity supplied
2. Suppose that there is a tax of $1 per unit, and the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value). How much of the $1 tax is paid by sellers?
A. $0.60
B. $0.40
C. $0.75
D. $0.67
3. Which of the following factors causes a demand curve to become more elastic over time?
A. New substitutes for the product are discovered.
B. New and important uses for the product are discovered.
C. More producers begin to produce the product.
D. More consumers acquire a desire for the product.