Suppose there is currently a tax of $50 per ticket on airline tickets. Buyers of airline tickets are required to pay the tax to the government. If the tax is reduced from $50 per ticket to $20 per ticket, then the
a. demand curve will shift upward by $30, and the price paid by buyers will decrease by less than $30.
b. demand curve will shift upward by $30, and the price paid by buyers will decrease by $30.
c. supply curve will shift downward by $30, and the effective price received by sellers will increase by less than $30.
d. supply curve will shift downward by $30, and the effective price received by sellers will increase by $30.
a
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"Opportunity cost" is
A) the monetary cost of one's actions. B) the objective cost of one's actions. C) the regret one feels when making a sacrifice. D) the value one places on the item, project, or plan he has chosen to pursue. E) none of the above.
The long-run supply curve in a competitive market is upward sloping
Indicate whether the statement is true or false
Price elasticity is unit elastic at the midpoint of a linear, downward-sloping demand curve
a. True b. False
If the money multiplier is 2.5, the reserve ratio is:
A. 0.5. B. 0.4. C. 0.3. D. 0.6.