An excise tax on alcohol causes the supply of alcohol to decrease and the price of alcohol to decrease.
Answer the following statement true (T) or false (F)
False
When supply shifts to the left, the equilibrium price rises.
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A competitive market is one in which there
a. is only one seller, but there are many buyers. b. are many sellers, and each seller has the ability to set the price of his product. c. are many sellers, and they compete with one another in such a way that some sellers are always being forced out of the market. d. are so many buyers and so many sellers that each has a negligible impact on the price of the product.
Why is the supply of loan able funds not perfectly inelastic? (In other words, why is the supply curve up sloping?)
What will be an ideal response?
A higher desired level of capital and investment will result from ________
A) a decrease in productivity B) a fall in expected future output C) a depressed economy D) a booming economy
With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers:
A. then the policy was effective since consumers gained in surplus overall.
B. then the policy was ineffective since consumers gained in surplus overall.
C. then the policy was ineffective since consumers lost surplus overall.
D. then the policy was effective since consumers lost surplus overall.