A good has a downward-sloping demand curve and a perfectly elastic supply. Imposing a sales tax of $1 per unit on the sellers of the good
A) raises the price paid by demanders by more than $1.00.
B) raises the price paid by demanders by $1.00.
C) raises the price paid by demanders by less than $1.00.
D) does not change the price paid by demanders.
B
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Suppose there are four firms that are each willing to sell one unit of a good. Each firm has a different minimum price that they are willing to sell for: Firm A $6, Firm B $7, Firm C $10, and Firm D $12
If the market price is $11 then the market supply for this good will be A) 3 units. B) 4 units. C) 1 unit. D) 2 units.
Suppose that money supply growth continues to be higher in Turkey than it is in the United States. What does purchasing-power parity imply will happen to the real and to the nominal exchange rate?
Which of the following occurs while moving along a short-run aggregate supply curve?
A) The money wage rate and the price level change by the same percentage. B) The money wage rate changes and the price level is constant. C) The price level changes and the money wage rate is constant. D) Neither the price level nor the money wage rate changes.
Suppose the firm's total revenue is $4,000 and its total cost is $1,200 . We know, then, that the firm
a. should produce more to maximize profit b. should lower its price to maximize profit c. should lower average total cost to maximize profit d. should stay where it is because it's maximizing profit e. can't determine what it should do with that incomplete information