Refer to Scenario 10.4. Suppose that the municipal stadium authority imposes a tax of $10 per ticket on the concert promoters. Given the information above, the profit maximizing ticket price would
A) increase by $10.
B) increase by $5.
C) not change.
D) decrease by $5.
E) decrease by $10.
B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
If the interest rate is 8 percent, the present value of $10,000 to be received 10 years from today is about
A) $21,589. B) $9,259. C) $4,632. D) $10,800.
A union can be viewed as a monopoly seller of a service. What are the three wage and employment strategies the union might use?
What will be an ideal response?
How does an increase in income affect the market for iPads (normal good)?
a. The demand curve for iPads shifts to the right b. The demand curve for iPads shifts to the left c. The supply curve for iPads shifts to the right d. The supply curve for iPads shifts to the left