price income and demand elasticities Flashcards
1
Q
in terms of shifts what does an increase in income lead to?
A
a shift along the supply curve
2
Q
Suppose the government wants a tax levied on each unit of a good
bought and sold. The government wants the incidence to fall mainly on
buyers not producers. It also wants to disturb the quantity bought and
sold as little as possible. Which demand or supply curves best meets
these requirements?
A
highly inelastic demand