An example of a tax specifically designed to reduce consumption of a good is a tax on:
A. automobiles.
B. dairy products.
C. gasoline.
D. fast food.
C. gasoline.
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The above figure shows a graph of the market for pizzas in a large town. Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce no more than 40 pizzas
What will the price of pizza be as a result of this quota? A) $2 B) $7 C) $8 D) $10
Which of the following is likely protected by copyright?
A) Your recipe for chocolate cake B) Your autobiography C) The color scheme for your house D) The names of your children
An increase in the demand for British pounds might result from: a. a reduction in the price level in the U.S. relative to Britain. b. a recession in the U.S. which reduces real output
c. a decline in interest rates in Britain. d. a decline in interest rates in the U.S.
A perfectly inelastic demand curve indicates that
a. a producer can sell as many units as desired at the market price but no units above the market price. b. for a given percent change in price, the quantity demanded rises by the same percentage. c. price has no effect on the quantity demanded. d. the percent change in price is less than the percent change in quantity demanded.