Figure 4-7
Refer to . The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Which of the following states the actual burden of the tax?
a.
$.50 for buyers and $.10 for sellers
b.
$.50 for sellers and $.10 for buyers
c.
The entire $.60 falls on sellers.
d.
The entire $.60 falls on buyers.
a
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An increase in demand combined with no change in supply
A) raises the equilibrium price. B) lowers the equilibrium price. C) results in only a movement rightward along the demand curve. D) decreases demand because the supply curve does not shift.
Define the following terms completely and concisely. a. Marginal revenue b. Average revenue c. Optimal decision d. Satisficing e. Marginal profit
What will be an ideal response?
The guidelines for whether or not to include an additional variable include all of the following, with the exception of
A) providing "full disclosure" representative tabulations of the results. B) testing whether additional questionable variables have nonzero coefficients. C) determining whether it can be measured in the population of interest. D) being specific about the coefficient or coefficients of interest.
A hotel in New Hampshire charges $150 per room in the winter ski season and $90 during the summer months. The number of rooms and operating costs are constant year round. These prices indicate
a. a rightward shift in the demand in the summer. b. a rightward shift in demand in the winter. c. a leftward shift in the supply curve in the summer. d. a leftward shift in demand in the winter.