Refer to the figure above. If the pre-tax equilibrium price of Good X was $3 and the price that sellers receive after the imposition of a tax of $3 is $2, the incidence of the taxation on sellers is approximately ________
A) 1%
B) 15%
C) 33%
D) 21%
C
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Every society must deal with the problem of scarcity because:
a. people do not have enough money to buy everything they need. b. government levies heavy taxes on households and firms. c. human beings become satiated as consumption increases. d. human wants are nearly unlimited relative to the availability of resources. e. productive resources, technology, and labor are unlimited.
If banks faced a 100 percent reserve requirement, a $10,000 addition to banking reserves would increase the money supply by:
a. $100 b. $1,000. c. $10,000. d. $100,000.
If the economy's full-employment output is $9 trillion, actual output is $9 trillion, and the budget deficit is $20 billion, the deficit in this case is known as a
A. fiscal deficit. B. structural deficit. C. natural employment deficit. D. cyclical deficit.
An increase in demand for laptop computers would likely be caused by
A. an increase in the price of a complementary good. B. an increase in the price of laptop computers. C. a decrease in the price of laptop computers. D. an increase in the price of a substitute good.