A unit tax of $1 will always

A) shift the supply curve upward by more than $1.
B) shift the supply curve upward by less than $1.
C) shift the supply curve up by exactly $1.
D) leave the supply curve unchanged.


Answer: C

Economics

You might also like to view...

The gap between real GDP per person in the United States and South America has been narrowing since 1980

Indicate whether the statement is true or false

Economics

Wealth and substitution effects explain why the aggregate demand curve has a positive slope

Indicate whether the statement is true or false

Economics

Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.25 per unit, what is the profit-maximizing quantity for Sweet Grams to produce at Plant 1?


Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.

A) 27,000
B) 30,100
C) 36,000
D) 24,500

Economics

Currency includes coins and paper money in circulation and stored in the federal reserve vaults

a. True b. False Indicate whether the statement is true or false

Economics