ch 6 Flashcards
1
Q
economic burden is determined by
A
price elasticities of supply and demand
2
Q
taxes reduce
A
quantity, price sellers recieve
3
Q
taxes raise
A
prices buyers pay
4
Q
subsidies raise
A
quantity, price sellers receive
5
Q
subsidies reduce
A
price buyers pay
6
Q
price ceilings are
A
maximum prices sellers can charge
7
Q
price ceilings reduce
A
quantity sold
8
Q
price ceilings create
A
shortages
9
Q
price floors are
A
minimum prices sellers can charge
10
Q
price floors reduce
A
quantity sold
11
Q
price floors create
A
surplus
12
Q
A
