How would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold?
A) The supply of smartphones would decrease.
B) The demand for smartphones would increase.
C) The demand for smartphones would decrease.
D) The price of smartphones would rise by $5.00.
A
You might also like to view...
An increase in the number of fast-food restaurants
A) raises the price of fast-food meals. B) increases the demand for fast-food meals. C) increases the supply of fast-food meals. D) increases the demand for substitutes for fast-food meals.
If the explicit costs to a firm to produce a unit of output are $6 and the firm sells 200,000 units of output for $9 per unit, the accounting profit received by the producer is
A) $1.2 million. B) $850,000. C) $1.8 million. D) $600,000.
Which of the following components of GDP accounts for the bulk of national expenditures in the United States?
a. Government purchases b. Imports c. Consumption d. Investment e. Exports
The law of diminishing marginal utility states that
A. Marginal utility always falls to zero after two or three units of a good consumed. B. As a consumer enjoys successive units of a good, eventually marginal utility will fall. C. The total utility of consuming the next unit of a good falls. D. The total utility of a good rises at a fast rate as more units of a good are consumed.