If a tax (paid by consumers) is levied on a good, this would
A. move its demand curve to the right.
B. cause a movement along the demand curve to a (higher price, lower quantity) point.
C. move its demand curve to the left.
D. cause a movement along the demand curve to a (lower price, higher quantity) point.
Answer: C
You might also like to view...
The above figure shows the domestic supply of and domestic demand for an imported good. The world price is $15 per unit
a. At the world price of $15 per unit, what is the domestic consumption and domestic production? b. At the world price of $15 per unit, what is the quantity imported? c. If the government imposes a tariff of $5 per unit, what is the domestic consumption and domestic production? d. With the $5 per unit tariff, what is the quantity imported? e. How much revenue does the government collect with a tariff of $5 per unit?
The efficient markets hypothesis implies that prices in the stock market
A) follow a definite pattern. B) are more likely to go up than down. C) always undervalue the true assets of a corporation. D) are unpredictable.
If the price of a good decreases, the resulting increase in the quantity purchased decreases the marginal utility of the good
a. True b. False Indicate whether the statement is true or false
A profit-maximizing firm in a monopolistically competitive market charges a price equal to marginal cost
a. True b. False Indicate whether the statement is true or false