Which of the following is not correct?
a. Taxes levied on sellers and taxes levied on buyers are not equivalent.
b. A tax places a wedge between the price that buyers pay and the price that sellers receive.
c. The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers.
d. In the new after-tax equilibrium, buyers and sellers share the burden of the tax.
a
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Refer to Table 2-12. What is Guatemala's opportunity cost of producing one sailboat?
A) 1/6 of a canoe B) 2/3 of a canoe C) 3 canoes D) 6 canoes
Horizontal equity is extremely compatible with the benefit principle
a. True b. False
Describe the types of entry barriers that can exist and their importance to the study of monopoly.
What will be an ideal response?
The long-run exit rule is to exit the industry if:
A. P > AVC. B. P < AVC. C. P < ATC. D. P > ATC.