In Singapore the government places a $5,000 tax on the buyers of new automobiles. After the purchase of a new car, a buyer must pay the government $5,000. How would the imposition of the tax on buyers be illustrated in a graph?
A) The tax will shift the demand curve to the left by $5,000.
B) The tax will shift the supply curve to the left by $5,000.
C) The tax will shift both the demand and supply curves to the right by $5,000.
D) The tax will shift the demand curve to the right by $5,000.
A
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An outward shift of the production possibilities curve demonstrates
A) economic growth. B) an increased rate of inflation. C) a cyclical shock. D) a recession.
The interest payment on a bond is called
A) the coupon payment. B) the face value. C) principal. D) the interest rate.
What impact do the following have on the aggregate demand curve? Give suitable examples to support your answers
a. The Wealth Effect b. The Interest Rate Effect c. The Exchange Rate Effect
The effects of asset price inflation and asset price deflation generally:
A. even out. B. are addressed by policymakers. C. have unequal effects on the economy. D. are unrelated.