Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. How much of the total tax revenue is paid by the seller?
A. $750
B. $375
C. $675
D. $300
Answer: B
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Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price decreases from $20 to $18 is
A. -1.37. B. -0.33. C. -3.29. D. -1.
The supply of reserves __________ when the federal funds rate __________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; changes
Transactions costs are:
A. the time and energy involved with creating an exchange. B. often cited as a reason why purchasing power parity doesn't hold. C. usually higher when transactions take place internationally. D. All of these statements are true.
Why would a firm price discriminate? Because price discrimination allows the firm to
a. increase consumer surplus b. create brand multiplication c. select the best consumers who are willing to pay the highest price d. convert consumer surplus into economic profit e. shift its demand curve to the right