Refer to Scenario 19.4 below to answer the question(s) that follow. SCENARIO 19.4: Suppose demand for widgets is given by the equation P = 10 - 0.25Q. Originally, the price of the good is $5 per unit. When a tax of $1 per unit is imposed, the price of the good rises to $6 per unit.Refer to Scenario 19.4. What is the total burden of the tax?
A. $2
B. $18
C. $32
D. $50
Answer: B
You might also like to view...
When a monopoly does exist, it is usually ______.
a. absolute b. limited c. unrecognizable d. unprofitable
In real terms, the cost of government spending is measured by
A. Subtracting private sector output from the public sector output sacrificed when the government employs scarce resources. B. The public sector output sacrificed when the government employs scarce resources. C. The private sector output sacrificed when the government employs scarce resources. D. Combining the private sector output with the public sector output sacrificed when the government employs scarce resources.
All of the following explain the downward slope of the aggregate demand curve EXCEPT
A. the availability of foreign substitute goods. B. the effect of changing interest rates on the quantity demanded of interest-rate-sensitive goods. C. changes in the stock of real wealth held by individuals. D. the presence of unused production capacity and unemployment.
The working-age population includes
A) people over the age of 16 who are in the Army. B) employed and unemployed people over the age of 16. C) those in jails and hospitals. D) youngsters between the ages of 14 and 16 if they are working at least part time. E) only employed people over the age of 16.