1201 principles of microeconomics supply and demand
Instructions
Your answers should include proper graphs, diagrams and figures. These will really aid in your solutions.
Use a supply-and-demand diagram to illustrate the effects of a sales tax on the sellers of a product.
What situation would be expected in a labour market in which the government imposes a binding minimum-wage law?
Farmers have a relatively inelastic demand for their crops. Suppose there is an unusually large harvest in a particular year. How would you expect this to affect the incomes of the farmers?
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