If there is a $ tax on either buyers or sellers, they ______.
Fill in the blank(s) with the appropriate word(s).
Split the cost evenly based on the equilibrium point.
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Assume that in the market for plasma TVs there is an increase in supply. The result will be:
A) an increase in equilibrium price and quantity. B) a decrease in equilibrium price and quantity. C) an increase in equilibrium quantity and uncertain effect on equilibrium price. D) a decrease in equilibrium price and increase in equilibrium quantity.
If the Federal Reserve sells a $2,000 bond to a bond dealer who pays with a check written on an account at Second National Bank, what changes will occur on the bank's balance sheet after the check clears?
a. Reserves and total assets will increase by $2,000 . demand deposits and total liabilities will decrease by $2,000. b. Reserves, demand deposits, total assets, and total liabilities will all increase by $2,000. c. Reserves and total assets will decrease by $2,000 . demand deposits and total liabilities will increase by $2,000. d. Reserves, demand deposits, total assets, and total liabilities will all decrease by $2,000. e. Reserves will decrease by $2,000 . demand deposits, total assets, and total liabilities will all increase by $2,000.
If in the market for peaches the supply curve has shifted to the left
A) the supply of peaches has increased. B) the supply of peaches has decreased. C) the quantity of peaches supplied has increased. D) the quantity of peaches supplied has decreased.
In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts down and to the left, and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run, what should the Fed do? Use the LR curve to formulate your answer.
What will be an ideal response?