The graph shown demonstrates a tax on buyers. Which of the following can be said about the effect of this tax?
A. The tax creates a shortage, and the government must regulate the market.
B. The tax creates a surplus, and the government must buy the excess.
C. The tax creates a shortage, and rationing must occur.
D. None of these is true.
Answer: D
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Holding everything else constant, an increase in the price of raisins will result in
A) an increase in the quantity of raisins demanded. B) a decrease in the quantity of raisins demanded. C) an increase in the demand for raisins. D) a decrease in the supply of raisins.
A price ceiling is a legally determined maximum price that sellers may charge
Indicate whether the statement is true or false
One of the following is a regression example for which Entity and Time Fixed Effects could be used: a study of the effect of
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Reduced U.S. tastes for European goods would ____ the supply of euros and ____ the demand for euros. a. decrease; increase
b. not change; increase. c. increase; increase. d. not change; decrease.