From 1970 to 2010, the real price of eggs decreased. Which of the following would cause an unambiguous decrease in the real price of eggs?
A) A shift to the right in the supply curve for eggs and a shift to the right in the demand curve for eggs.
B) A shift to the right in the supply curve for eggs and a shift to the left in the demand curve for eggs.
C) A shift to the left in the supply curve for eggs and a shift to the right in the demand curve for eggs.
D) A shift to the left in the supply curve for eggs and a shift to the left in the demand curve for eggs.
B
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Compare and contrast the tax base with the tax rate structure
What will be an ideal response?
Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The price received by sellers with the tax is:
A. $2.33. B. $1.50. C. $1.75. D. $1.83.
A tariff has the effect of
a. raising the price of the exported good b. increasing the demand for the exported good c. increasing the demand for the imported good d. increasing the supply of the imported good e. raising the price of the imported good
Trade protectionism (barriers) for a product will result in:
Lower prices for imports of that product Higher prices for imports of that product Higher prices for domestic producers of that product Lower prices for foreign producers of that product