An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline in a market with downward sloping demand and upward sloping supply would raise the equilibrium price
A. by less than $1.00 per gallon.
B. exactly $1.00 per gallon.
C. by more than $1.00 per gallon.
D. too little information to determine the impact on the equilibrium price.
Answer: A
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The two sectors of the economy in the simple circular flow model are
A) the employed and the unemployed. B) households and businesses. C) foreign markets and domestic markets. D) the private sector and the public sector.
A local theater charges $5.00 for every matinee (daytime) ticket, but the ticket prices are much higher during the evening. This is an example of
A) peak-load pricing. B) second-degree price discrimination. C) a two-part tariff. D) bundling. E) none of the above
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.Pat's explicit costs are ________, and Pat's implicit costs are ________.
A. $16,000; $51,000 B. $15,000; $36,000 C. $35,000; $16,000 D. $16,000; $35,000
Refer to the cost data given below. How much is the firm's total fixed costs?
A. $900
B. $500
C. $400
D. Cannot be determined from the given data