Question

9. A tax on a product A) has no impact on quantity demanded B) always decreases quantity demanded more than quantity supplied. C) creates a difference between the price paid by the buyer and the price received by the seller D) usually has a negligible burden 10. Other things constant, when demand is price inelastic an increase in A) the price leads to lower total revenue B) total revenue means that quality will improve C) total revenue leads to a reduction in price. D) price leads to greater total revenue 24. Ifthe price ofa product with an inelastic demand is increased, the A) gain in revenue from the higher price is greater than the loss in revenue from selling fewer units B) gain in revenue from the higher price is greater than the gain in revenue from selling fewer units C) loss in revenue from the higher price is smaller than the loss in revenue from selling fewer units D) gain in revenue from the higher price is smaller than the loss in revenue from selling fewer units

Answer 1

a) "C"

it creates a difference between the price paid by the consumer and price received by the supplier.

b) ""D

A higher price will lead to a higher revenue for the firm if the demand is price inelastic.

c) "A"

gain in revenue from a higher price will be more than the loss in revenue due to less sales.