The imposition of a tax on a good enables the government to
A) raise the price received by sellers of the goods that have been taxed.
B) lower the price paid by buyers for the goods that have been taxed.
C) create a more efficient economic system.
D) take part of consumer and producer surplus as tax revenue when the good is purchased.
E) decrease the deadweight loss in this market.
D
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If consumers paid an amount for any good that reflected the value of the total benefits they receive from consuming it, then
a. consumer surplus would be at a maximum b. consumer surplus would be equal to zero c. total revenue would equal variable cost d. consumer surplus would equal producer surplus e. producer surplus would exceed consumer surplus
A monopolist has complete control over both price and quantity of output
a. True b. False
In determining the exchange rate between the Canadian dollar and British pound, if Canadian income increases, then
a. the demand for pounds will increase, leading to depreciation of the Canadian dollar, assuming exchange rates are allowed to float b. the demand for pounds will increase, leading to depreciation of the Canadian dollar, assuming exchange rates are fixed c. the demand for pounds will increase, leading to appreciation of the Canadian dollar, assuming exchange rates are allowed to float d. the demand for pounds will increase, leading to appreciation of the Canadian dollar, assuming exchange rates are fixed e. the supply of pounds will shift to the left, causing appreciation of the Canadian dollar, assuming exchange rates are fixed
Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. During "happy hour," many bars and restaurants face an increase in demand for food and drink, and these establishments often cut prices during these times of increased demand. When this demand increases, the demand curve facing these bars and restaurants becomes:
A. vertical. B. horizontal. C. steeper. D. flatter.