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1. A tax levied on the buyers (demand side) of a product:
A. Leads to a lower equilibrium
B. Shifts the demand curve to the right
C. Has no effect on the supply or the demand curve
D. None of the above
2. Which of the following can occur as a result of advertising in a monopolistically competitive market? Check all that apply.
a) Lower long-run product price
b) Negative long-run profit
c) Higher long-run product price
d) Positive short-run profit
3. An adverse effect of rent control is that it creates a shortage in the market.
True
False
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