Suppose an excise tax of $1 is imposed on every case of beer sold and sellers are responsible for paying this tax. How would the imposition of the tax be illustrated in a graph?
A) The supply curve for cases of beer would shift to the right by $1.
B) The supply curve for cases of beer would shift to the left by less than $1.
C) The supply curve for cases of beer would shift to the left by more than $1.
D) The supply curve for cases of beer would shift to the left by $1.
D
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Which is the best example of an intangible good?
A) the car you dream of owning but cannot afford B) the suit you hope will make a good impression when you go on job interviews C) the textbook study guide you hope will prepare you to perform well on examinations D) the advice and expertise provided by the music store clerk who sold you that CD
When comparing perfect competition and monopoly, a major assumption made is that
A) the monopolist faces a downward sloping demand curve. B) consumers only care about the price of the good and not whether the seller is a monopoly or not. C) the costs of production are the same under monopoly as under perfect competition. D) the monopolist can make an above normal rate of return.
Excess capacity and inefficiency result under monopolistic competition.
Answer the following statement true (T) or false (F)
An individual's labor-supply curve reveals how he or she chooses to allocate
a. limited dollars between luxuries and necessities. b. scarce money between goods and services. c. scarce time between labor and leisure. d. limited time between work at one job and work at another.