The government of Healthyland imposes a tax on sellers of salt. The tax is $0.10 per pound. With no tax, the market price of salt is $0.40 per pound. The demand for salt is perfectly inelastic, and the elasticity of supply is 1.5
With the tax, the price that sellers of salt in Healthyland receive and keep is A) $0.40 per pound.
B) $0.35 per pound.
C) $0.45 per pound.
D) $0.50 per pound.
A
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According to the Ricardo-Barro effect, an increase in the government budget deficit
A) lowers the real interest rate. B) has no effect on the nominal interest rate but does change the real interest rate. C) shifts the demand for loanable funds curve leftward. D) shifts the supply of loanable funds curve leftward. E) does not change the real interest rate.
The Fed buys $100 million U.S. government securities from Bank of America. Bank of America's balance sheet shows this transaction as ________ in total assets and ________ in reserves
A) no change; a $100 million decrease B) no change; a $100 million increase C) a $100 million increase; no change D) a $100 million increase; a $100 million increase E) a $100 million decrease; a $100 million decrease
Discuss the values of private saving in closed and open economies
What will be an ideal response?
The form of property ownership rights inherited from the colonial period was characterized by which of the following?
(a) Property ownership was almost ideal as the base for a free-market economy. (b) Property ownership established property, including land, as a "commodity" that could be easily bought and sold. (c) Property ownership proved to be an excellent vehicle for economic growth. (d) All of the above.