When a unit tax of $2 is levied on a product
A) the entire $2 is paid by the consumer.
B) the entire $2 is paid by the producer.
C) both the consumer and producer pay $2 each.
D) the consumer pays part of the $2 and the producer pays the rest.
Answer: D
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Lizzie's budget line is shown in the figure above. If Lizzie's income increases, her budget line
A) shifts rightward and its slope does not change. B) shifts leftward and its slope does not change. C) becomes flatter. D) becomes steeper.
Refer to Figure 10.1. If the monopolist is not regulated, the price will be set at ________
A) P1 B) P2 C) P3 D) P4 E) none of the above
As long as neither supply nor demand is perfectly elastic, both suppliers and demanders will pay part of any tax.
a. true b. false
Which term below fits closest to money functioning as a unit of accounting?
A. liquidity B. standard of value C. medium of exchange D. adverse selection