CFA备考-典型例题典型例题_Economics-2017.pdfVIP

Economics 1. For markets with perfectly elastic supply, the introduction of a tax will most likely result in: A. a price increase and the seller pays the entire tax. B. a price increase and the buyer pays the entire tax. C. no change in price and the seller pays the entire tax. Answer: B When supply is perfectly elastic (horizontal supply curve) the price increases by the amount of tax and the seller passes onthe entire tax burdento the buyer. 2. If the quantity demanded of pears falls by 4% when the price of apples decreases by 3%, then