Suppose sellers of liquor are required to send $5.00 to the government for every bottle of liquor they sell. Further, suppose this tax causes the price paid by buyers of liquor to rise by $3.00 per bottle. Which of the following statements is correct?
a. This tax causes the supply curve for liquor to shift upward by $5.00 at each quantity of liquor.
b. The effective price received by sellers is $5.00 per bottle less than it was before the tax.
c. Forty percent of the burden of the tax falls on buyers.
d. All of the above are correct.
a
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. When both players have dominant strategies, there is only one Nash equilibrium. 2. The Battle of the Sexes game has two Nash equilibria, neither of which is Pareto optimal. 3. All outcomes in the Copycat Game are Nash equilibria. 4. A solution concept is any way of analyzing a game which leads to the discovery of a Nash equilibrium which solves the game. 5. The concept of Nash Equilibrium is an important solution concept because it helps make predictions.
The figure above shows the labor market in a small town. If the government imposes ________ that firms must at least pay, the effect will be ________ because ________
A) a minimum wage of $10; an increase in unemployment; a surplus of labor is created B) a minimum wage of $10; no change in unemployment; it will not affect how firms demand labor C) a minimum wage of $10; a decrease in unemployment; a shortage of labor is created D) an efficiency wage of $10; an increase in unemployment; a shortage of labor is created E) an efficiency wage of $10; a decrease in unemployment; a surplus of labor is created
Jim' burger produces 500 burgers per week. Each burger is priced at $3 . What is the marginal revenue of selling the 50th burger?
a. $3 b. $150 c. $147 d. It cannot be determined with the information given
Which of the following statements is true?
A) Individuals who have never been the best at doing anything cannot have a comparative advantage in producing any product. B) Individuals who have never been the best at doing anything can still have a comparative advantage in producing some product. C) Individuals who have never been the best at doing anything perform all tasks at a higher opportunity cost than others. D) Individuals who have never been the best at doing anything must have an absolute advantage in at least ones task.