Suppose an excise tax is imposed on product X. We expect this tax to:
A. increase the demand for complementary good Y and decrease the demand for substitute
product Z.
B. decrease the demand for complementary good Y and increase the demand for substitute
product Z.
C. increase the demands for both complementary good Y and substitute product Z.
D. decrease the demands for both complementary good Y and substitute product Z.
Answer: B
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When studying human behavior, economists assume rational self-interest. This means that people
A. always make the right decisions. B. make decisions based on some desired outcome. C. are quite selfish and are not concerned about others. D. have all the information they need to make a decision.
A regulation that sets the lowest price at which it is legal to trade a good is a
A) search ceiling. B) price floor. C) production ceiling. D) price ceiling. E) subsidy.
The price/earnings (PE) ratio of a stock is found by
a. dividing the most recent year's dividend by the current stock price b. dividing the current stock price by the after-tax profit per share c. dividing the most recent year's dividend by retained earnings d. dividing the current stock price by the Dow Jones Industrial Average e. dividing the current stock price by the present value of the firm
Susan and Calvin paint houses. Susan consistently paints about 400 square feet of a house's exterior per hour, while Calvin consistently paints about 300 square feet per hour. Susan's __________ exceeds that of Calvin
Fill in the blank(s) with correct word