Assume that the demand curve for oranges is downward-sloping and the supply curve for oranges is upward-sloping. If the government imposes an excise tax of 10¢ per orange, then the total price (including the tax) that demanders must pay for an orange
a. remains unchanged.
b. rises by less than 10¢ per orange.
c. rises by exactly 10¢ per orange.
d. rises by more than 10¢ per orange.
b. rises by less than 10¢ per orange.
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Which of the following statements is true?
A) Most of the leading exporting countries are large, high-income countries. B) All sectors of the U.S. economy are affected equally by international trade. C) Each year China exports about 50 percent of its wheat crop and 40 percent of its rice crop. D) Exports benefit trading countries because exports create jobs. Imports do not benefit trading countries because they result in a loss of jobs.
Why do economists predict that investment increases when the real rate of interest falls?
What will be an ideal response?
Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
A) The fact that price exceeds marginal cost B) Excess capacity C) Product diversity D) The fact that long-run average cost is not minimized E) all of the above
The Federal Open Market Committee meets approximately
a. every three weeks b. every six weeks c. every 3 months d. every 6 months.