In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $800 per month in tax revenue. We can conclude that the equilibrium
quantity of widgets has fallen by
a. 40 per month.
b. 50 per month.
c. 75 per month.
d. 100 per month.
a
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What are the types of institution banks used to conduct foreign business?
A) corporations B) central banks C) commercial banks D) agency offices, subsidiary banks, and foreign branches E) state-owned enterprises
Which of the following short-run outcomes for monopolistic competition is NOT possible?
A) P = MR = MC. B) P > MC > ATC. C) P = ATC. D) P > ATC.
Which of the following accounts for approximately three-fourths of all welfare spending?
a. the school lunch program b. the earned income tax credit c. unemployment compensation and workers' compensation combined d. "in-kind" transfers e. cash transfers
If an individual perfectly competitive firm charges a price above the industry equilibrium price, it will
A. not sell any of what it produces. B. sell all that it can produce and gain equal revenue with competitors. C. sell part of what it can produce and gain less revenue than competitors will. D. sell all that it can produce and gain more revenue than competitors.