If penalties are imposed on both the buyers and the sellers of illegal goods or services, then an effect in the market for the illegal good or service would definitely be
A) an increase in the equilibrium price.
B) a decrease in the equilibrium price.
C) a decrease in the equilibrium quantity.
D) an increase in the equilibrium quantity.
C
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For a tax to be successful, the tax base must be ¬¬¬_____
a. easy to measure and monitor b. large c. inelastic d. able to expand in times of crisis
A law requiring sellers to pay the government a tax per pack on cigarettes has the effect of:
a. shifting the supply curve to the right. b. shifting the demand curve to the right. c. shifting the supply curve to the left. d. shifting the demand curve to the left.
Minimum-wage laws dictate
a. the exact wage that firms must pay workers. b. a maximum wage that firms may pay workers. c. a minimum wage that firms may pay workers. d. both a minimum wage and a maximum wage that firms may pay workers.
Which of the following would cause a shift in the demand curve from point A to point B?
A. a decrease in income (inferior good) B. an increase in the price of a substitute good C. an increase in income (normal good) D. all of the above