Suppose buyers of vodka are required to send $5.00 to the government for every bottle of vodka they buy. Further, suppose this tax causes the effective price received by sellers of vodka to fall by $3.00 per bottle. Which of the following statements is correct?
a. This tax causes the demand curve for vodka to shift downward by $5.00 at each quantity of vodka.
b. The price paid by buyers is $2.00 per bottle more than it was before the tax.
c. Sixty percent of the burden of the tax falls on sellers.
d. All of the above are correct.
d
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A risk-neutral individual will make investment decisions purely based on expected value because
A) she doesn't care about utility. B) utility is a linear function of wealth. C) she loves to take risk. D) expected value is always more than expected utility.
The slope of an indifference curve is ____ and a movement along the curve causes the loss in marginal utility (MU) of one good to ____ the marginal utility (MU) gained from another good
a. zero; maximize b. positive; exceed c. concave; reduce d. negative; equal
Each of the following, except one, is a condition that characterizes a perfectly competitive labor market. Which is the exception?
a. Workers appear identical to firms. b. Workers receive wages that are above their marginal revenue product (MRP). c. There are no barriers to entering the labor market. d. There are no barriers to exiting from the labor market. e. There are many buyers of labor in the market.
If real GDP is increasing more rapidly than population
What will be an ideal response?