When a tax is imposed in a market for a good, deadweight loss occurs because
a. the tax discourages mutually advantageous trades between buyers and sellers
b. the resulting tax revenue exceeds the loss in total surplus.
c. buyers continue to buy the same amount of the good despite the higher after-tax price
d. the demand and supply for most goods are inelastic.

In macroeconomics, to study the aggregate means to study blank

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?

Why is the type of product sold in an industry an important characteristic? a firm that can differentiate its product from that of rivals may be able to charge a higher price for a superior product. a firm that sells intangible goods is usually considered a monopoly. service industries cannot differentiate their products, which makes it easy for new firms to enter the industry. expensive products are usually sold by perfectly competitive firms.