Does a tax on buyers affect the demand curve?

A. Yes, it shifts down by the amount of the tax.
B. Yes, it shifts up by the amount of the tax.
C. No, there is change in the quantity demanded, but the demand curve does not move.
D. Yes, it shifts to the left by the amount of the tax.


Answer: A

Economics

You might also like to view...

In 2007, the interest rate banks in France charge each other for loans was 4.86 percent. The inflation rate in France in 2007 was 2.8 percent. The real interest rate in France is

A) 7.62 percent B) 2.06 percent. C) 0.58 percent. D) 13.6 percent.

Economics

Pair-wise majority voting fails to meet which of the following criteria?

A. No dictator and transitivity B. No dictator and independence of irrelevant alternatives C. Transitivity D. Independence of irrelevant alternatives and transitivity

Economics

Comment on the following statement: "If one player in the game does not have a dominant strategy, it is impossible to predict the outcome of the game."

What will be an ideal response?

Economics

A firm's labor demand curve is also its marginal revenue product curve. For both the perfectly competitive firm and the output price maker, the labor demand curve slopes downwards

However, there is a difference in the reasons why the labor demand curve slopes downwards. What is this difference?

Economics