Suppose there is currently a tax of $50 per ticket on airline tickets. Sellers of airline tickets are required to pay the tax to the government. If the tax is reduced from $50 per ticket to $30 per ticket, then the
a. demand curve will shift upward by $20, and the effective price received by sellers will increase by $20.
b. demand curve will shift upward by $20, and the effective price received by sellers will increase by less than $20.
c. supply curve will shift downward by $20, and the price paid by buyers will decrease by $20.
d. supply curve will shift downward by $20, and the price paid by buyers will decrease by less than $20.
d
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Marginal revenue is less than price for price searchers
A) because they are monopolists. B) because they necessarily have some costs. C) if they enjoy grants of legal privilege. D) when they cannot charge all customers the maximum they are willing to pay for each unit purchased. E) when they have the ability to practice price discrimination.
Refer to Table 20-17. Looking at the table above, real average hourly earnings between 2015 and 2016 changed by
A) 1.2%. B) 4.5%. C) 9.9%. D) 14.5%.
When the absolute value of the price elasticity of demand falls in the range of 0 and 1, demand is said to be ________ , when it equals 1, demand is said to be ________ , and when the price elasticity of demand is greater than 1, demand is said to be ________
a. elastic, unitary elastic, inelastic b. inelastic, unitary elastic, elastic c. unitary elastic, elastic, inelastic d. inelastic, elastic, unitary elastic
Which of the following scenarios best illustrates the concept of cyclical unemployment?
A. Grace loses her job because of new automated machinery. B. Sean quits his job to look for work that is more fun. C. Ellen quits looking for work because she doesn’t think she can find a suitable job. D. Marian loses her job because of a recession.