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Consumers may benefit more than sellers from a subsidy to sellers if

Consumers may benefit more than sellers from a subsidy to sellers if

Consumers may benefit more than sellers from a subsidy to sellers if:

A. they deserve the subsidy more.

B. the demand curve is relatively less elastic than the supply curve.

C. the demand curve is relatively more elastic than the supply curve.

D. Consumers can never benefit more than sellers from a subsidy to sellers.

152.Is it possible for sellers to benefit more than consumers from a subsidy to buyers?

A. Yes, if the sellers need it more.

B. Yes, if the supply curve is relatively less inelastic than the demand curve.

C. Yes, if the supply curve is relatively more inelastic than the demand curve.

D. Producers can never benefit more than buyers from a subsidy to buyers.

153.The government is deciding where to place a tax of $0.50 because they want to raise revenues. In which market will they likely generate more revenue?

A. In markets with inelastic supply and demand, since the decrease in quantity traded will be smaller than in a market with elastic supply and demand curves

B. In markets with elastic supply and demand, since the decrease in quantity traded will be smaller than in a market with inelastic supply and demand curves

C. In markets with inelastic supply and demand, since the increase in quantity traded will be smaller than in a market with elastic supply and demand curves

D. In markets with elastic supply and demand, since the increase in quantity traded will be smaller than in a market with inelastic supply and demand curves

154.The government is deciding where to put a $1 tax—either in a market with elastic supply and demand curves, or a market with inelastic supply and demand curves. If their aim is to raise the most revenue with the smallest deadweight loss, where should the tax be placed?

A. In the market with elastic supply and demand curves

B. In the market with inelastic supply and demand curves

C. It is impossible to say without more information

D. Since the burden is shared, it doesn't matter which market it is placed in

155.Would you expect a tax on cigarettes to be more effective over the long run or the short run?

A. Long run because demand becomes more elastic over time

B. Long run because demand becomes less elastic over time

C. Short run because demand becomes more elastic over time

D. Short run because demand becomes less elastic over time

156.In general, price controls have a:

A. larger effect in the long run because demand and supply become more elastic over time.

B. larger effect in the short run since demand and supply become more elastic over time.

C. smaller effect in the long run since demand and supply become less elastic over time.

D. smaller effect in the short run because demand and supply become less elastic over time.

abhinav behal 15-Feb-2020

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