The government raises the sales tax on shirts. The tax is imposed on sellers. As a result, the ________
A) supply curve of shirts shifts leftward
B) supply curve of shirts shifts rightward
C) demand curve for shirts becomes vertical
D) demand curve for shirts becomes horizontal
A
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Explain why economies with financial account surpluses usually have current account deficits
What will be an ideal response?
The demand curve for a monopolist is
A) the industry demand curve. B) the same as the demand curve for a perfectly competitive firm. C) a perfectly inelastic demand curve. D) a unitary elastic demand curve.
When the decrease in the price of one good causes the demand for another good to decrease, the goods are
A. complements. B. normal. C. substitutes. D. inferior.
A firm with market power will be able to sell all of their output at any price they desire.
Answer the following statement true (T) or false (F)