In graphical form,the effect of imposing a tax on a good is shown as
A) a leftward shift of the market supply curve.
B) a rightward shift of the market supply curve.
C) a downward movement along the market supply curve.
D) no change to the market supply curve.
A
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Holding everything else constant, the U.S. real exchange with India will increase if the rupee depreciates
Indicate whether the statement is true or false
What effect have Medicare subsidies had on the consumption of medical services?
A) The consumption of medical services has been unaffected, because people don't consider the financial cost when seeking services related to their health. B) The consumption of medical services has been unaffected, because government restrictions have prevented patients from seeking a level of care above and beyond what they would choose if they had to pay for medical treatment out of pocket. C) The consumption of medical services has increased because Medicare subsidies give people the incentive to seek more care than they would otherwise. D) The effect cannot be measured because it is difficult to quantify the amount of resources devoted to our health care system.
Assume that a perfectly competitive increasing-cost industry is in long-run equilibrium when market demand suddenly increases. Which of the following statements is not correct?
a. Existing firms will earn economic profits in the new long-run equilibrium b. Existing firms will increase output in the short run c. New firms will enter the industry in the long run d. Some resource suppliers to the industry will earn higher income e. The new long-run equilibrium price will exceed the original equilibrium price
One reason why a monopolist might be able to provide greater output at lower costs than other market structures is that some monopolists
a. earn exceptional profit which allows them to lower price and costs b. produce high volume output which allows them to capture economies of scale so that their ATCs are lower c. have high market share which allows them to raise price and lower cost at the same time d. exploit their labor force by offering low wage rates so that costs are lower e. do not advertise, thereby reducing costs