A tax on buyers
What will be an ideal response?
- Lowers amt they are willing to pay sellers, decreases demand and shifts D curve leftward
- To determine new demand curve = max price buyers are willing to pay - tax
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Over the course of the 20th century, _____
a. federal government expenditures have grown less than state and local expenditures b. federal government expenditures have increased substantially as a percentage of GDP c. federal government expenditures remained fairly constant except during wartime d. federal government expenditures have always been higher than the expenditures of state and local governments.
Refer to the above figure. The above figure shows the cost structure of a firm producing an information product. Which curve represents average fixed cost?
A) Curve 1 B) Curve 2 C) Curve 3 D) Any of the 3 could be AFC.
Which of the following is a justification for transfer payments?
a) transfers can create a more ethically acceptable income distribution b) income redistribution provides insurance against misfortune c) poverty creates negative externalities such as crime and disease d) myopic individuals make time-inconsistent saving decisions e) all of the above
Refer to the data provided in Table 9.4 below to answer the question(s) that follow. Table 9.4qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 11004014040 40 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.42Refer to Table 9.4. If the market price is $56 and the firm produces 5 units of output, then its profit would be
A. -$100. B. -$88. C. $0. D. $36.