How would the elimination of a sales tax affect the market for a product that had been subject to the tax?
A) The equilibrium price for the product would fall by less than the amount of the tax.
B) The reduction in government revenue from the tax would be made up by an increase in property taxes.
C) The supply of the product would become more elastic.
D) The demand for the product would rise and the equilibrium price would fall by the amount of the tax.
A
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If the market clearing price of computer tablets falls from $400 to $300, and the market clearing output decreases from 5 million to 4 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
A black market may arise when government imposes a price ceiling
a. True b. False Indicate whether the statement is true or false
What does the word “real” mean in the phrase “real output of goods and services per capita”?
a. compared to projections b. not intellectual property c. indexed for inflation d. checked for mistakes
Industries may be oligopolistic due to barriers to entry.
Answer the following statement true (T) or false (F)