Option c.) is more elastic than the demand curve facing a perfectly competitive firm as the demand curve or the AR curve of a perfectly competitive firm is parallel to the horizontal axis, perfect elastic is the correct answer.
This means that the company does not control the price. The company assumes a price and sells the quantity of the product at that price. In a perfectly competitive market, a single firm faces a demand curve with infinite elasticity. In a perfectly competitive market, firms do not fix prices, but choose levels of production at which marginal costs equal market prices.
Under conditions of perfect competition, a firm can sell any quantity of goods at the prevailing price, so the firm's demand curve is perfectly elastic. So even a small price increase will result in zero demand. This suggests that the company does not control prices.
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Answer:
All of the above are correct
Explanation:
We evaluate the validity of each of the options.
A) option A is correct
According to the law of demand, all things being equal an increase in price leads to a decrease in the quantity demanded.
If there was no tax, it would have been sold at a lesser price which would have driven the demand curve upwards
B) Option B is correct
The incidence of the tax is summarized by the fact that tax payments are sent to the government.
C) Option C is correct
The total tax is $1 with the buyers paying $0.8 more for a bottle of liquor. This means they bear the burden of paying 80% of the tax
D) Is correct.
Having evaluated the validity of all the options to be correct, then this particular option is correct too
The answer is b because that’s how the government get paid.
Answer:
b) 4
Explanation:
effective monetary multiplier = [required reserve ratio]/[commercial bankers decide to hold additional excess reserves]
= 20/5
= 4
Therefore, the effective monetary multiplier for the banking system will be 4.
Answer:
The answer is "Both potatoes and wheat"
Explanation:
- The actual value of US production is a productivity gain, which is the value of potatoes and wheat, since it will yield more with a given day than in Ireland.
- Unless the country has it, otherwise nation A (USA) created the product more for country B (Ireland), the benefit between two commodities.
- Instead of the national comparative benefit, foreign trade is based on the concept of competitive advantage.
