When raising taxes, the price effect tells us that the:
A. higher tax rate causes fewer units to be sold.
B. government gets more revenue per units sold.
C. government gets less revenue per unit sold.
D. higher tax rate causes more units to be supplied.
B. government gets more revenue per units sold.
You might also like to view...
The increased use of automatic teller machines has decreased the demand for money
Indicate whether the statement is true or false
Which of the following was not one of Malthus assumptions?
a. stable prices b. production with only two inputs - land and labor c. a fixed supply of land d. human desire to increase the population
If productivity increases by 2 percent but wages increase by 3 percent, then it is most likely that the:
A. short-run aggregate supply curve will shift down (to the right). B. short-run aggregate supply curve will shift up (to the left). C. aggregate demand curve will shift left. D. short-run aggregate supply curve will not shift.
You shop at the local drugstore because it is convenient. This situation is best described as:
a. a market with horizontal demand. b. monopolistic competition with differentiation by location. c. differentiation by a cartel. d. differentiation by style or type.