A tax on buyers will cause the equilibrium price paid by the consumer to ________ and the equilibrium quantity to ________.
A. increase, decrease
B. decrease, decrease
C. decrease, increase
D. increase, increase
Answer: A
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A budget deficit exists if government spending ________.
is less than tax revenue (government budget surplus) is more than tax revenue. equals to tax revenue it is impossible to have a budget deficit
The president of which Federal Reserve Bank is always a voting member of the FOMC?
What will be an ideal response?
Interest rates in the loanable funds market vary with respect to
a. your rate of time preference. b. risk. c. expected inflation. d. all of the above. e. both b and c above.
Which of the following most accurately indicates the political incentive to spend and/or tax?
a. Politicians will find tax increases more attractive than increases in government expenditures. b. Voters will generally support higher taxes in order to eliminate budget deficits. c. Politicians are rewarded for raising taxes and punished for providing programs that benefit their constituents. d. Politicians are rewarded for providing programs that benefit their constituents and punished for raising taxes.