A tax on the buyers of sofas
a. increases the size of the sofa market.
b. decreases the size of the sofa market.
c. has no effect on the size of the sofa market.
d. may increase, decrease, or have no effect on the size of the sofa market.
b
You might also like to view...
Most of the taxes collected by governments tend to
A. remain fixed. B. move in the opposite direction from GDP. C. be sales taxes. D. rise and fall with the level of GDP.
If a state government reduces property taxes for residents at the same time that it increases the state income tax, what will happen to the expenditures schedule of the residents of this state?
A. It shifts upward. B. It shifts downward. C. It becomes less steep. D. It becomes steeper. E. It does not change.
Refer to the normal-form game of advertising shown below.Firm AFirm B??AdvertiseDo Not Advertise?Advertise$0,$0$175,$10?Do Not Advertise$10,$175$125,$125Suppose there is a 90 percent chance that the advertising game depicted in Figure 10-17 will end next period. The collusive agreement {(not advertise, not advertise)} is:
A. sustainable since $11.11 > $50. B. sustainable since $175 < $138.89. C. unsustainable since $11.11 > $50. D. unsustainable since $175 < $138.89.
The ________ supply curve(s) of a perfectly competitive firm is the portion of its marginal cost curve that lies above its average variable cost curve.
A. short-run B. short-run and long-run C. long-run D. A perfectly competitive firm faces no supply curve.