The effects of a per-unit tax imposed on sales of an industry's product would likely include
A. a leftward movement along the market supply curve for the product.
B. a lower product price at any amount of the product supplied.
C. a leftward shift of the market supply curve for the product.
D. none of these.
Answer: C
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What will happen if there is an increase in an existing tariff on grapes from Argentina?
a. There will be an increase in domestic production of grapes. b. There will be an increase in total American consumption of grapes. c. There will be an increase in American consumption of domestically produced grapes. d. There will be an increase in American imports of grapes from Argentina.
List three reasons why wages could be set above the equilibrium wage
The Coase theorem asserts that:
a. government intervention is necessary to deal with externalities. b. there are no costs associated with pollution abatement. c. when there are external costs, the industry supply curve reflects the true social costs. d. when externalities are present, an economy can reach an efficient solution as long as transactions costs are not too high.
If the supply curve is vertical, then supply is
A) relatively elastic. B) perfectly elastic. C) unit elastic. D) perfectly inelastic.