In Figure 9-13, the movement of equilibrium from point D to point C could be caused by
a. a decrease in supply from S2 to S1 in response to economic profits following a decrease in demand from D2 to D1
b. a short-run increase in supply from S1 to S2
c. an increase in supply from S1 to S2 in response to economic profits following an increase in demand from D1 to D2
d. external economies
e. in the short run, by an increase in demand from D1 to D2
e
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Use the figure below to answer the following question.
What is the amount of consumer surplus after the government imposes the excise tax on the market?
A. $8 B. $40 C. $20 D. $32
If demand in a perfectly competitive market decreases, supply will:
A. not change in the short run. B. increase in the long run. C. increase in the short run. D. decrease in the short run.
The most common form of tariff is a countervailing duty
Indicate whether the statement is true or false
The ultimate burden of the corporate profits tax appears to depend on all of the following except
A. the ease with which capital and labor can be substituted in the corporate and noncorporate sectors. B. the tax rate structure of the corporate profits tax. C. the relative capital/labor intensity of the corporate and noncorporate sectors. D. the elasticities of demand for the products produced in the corporate and noncorporate sectors.