Based on these graphs, if there was no supply-side effect to a tax cut, prices would ______.



a. remain at PL1

b. move to PL2

c. move to PL3

d. remain at PL2


c. move to PL3

Economics

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When the production of a worker is relatively easily observable, the firm can pay a piece-rate

Indicate whether the statement is true or false

Economics

A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker bought and sold at the equilibrium price, what is his profit

a. $1 b. $2.5 c. $3 d. $0

Economics

In the long-run, a perfectly competitive firm will leave the market if it is unable to cover all of its fixed costs

a. True b. False Indicate whether the statement is true or false

Economics

Suppose that a firm is currently producing 500 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?

A. $1,000 B. $501 C. $1,500 D. $500

Economics