1. The elasticity of demand is:
A equals the inverse of price to quantity demanded
B measures how far the demand curve shifts from a chamge in price
C tells us, how responsive consumer purchases are to price changes
D estimates the relationship between quantity demand and production costs
2. Whether buyer or sellers pays more of a commodity tax depends on:
A) The relative price elasticity
B) The decision made by Congress
C) Whether the demand curve is negatively or positively sloped
D) Whether the supply curve is negatively or positively curved