A tax on sellers:
A. shifts the demand curve left by the amount of the tax.
B. shifts the demand curve down by the amount of the tax.
C. shifts the supply curve up by the amount of the tax.
D. shifts the supply curve left by the amount of the tax.
Answer: C
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A firm has the following production function:
q = (L1/3 + K1/3)3 a. Determine the returns to scale for this function. b. Determine the MRTS. c. Determine the Elasticity of Substitution.
Money's use in non-barter transactions relates to its role as a
A) store of value. B) medium of exchange. C) unit of accounting. D) standard of deferred payment.
Suppose that the country of Aquilonia has an inflation rate of about 2 percent per year and a real growth rate of about 3 percent per year. Suppose also that it has nominal GDP of about 400 billion units of currency and current nominal national debt of 200 billion units of domestic currency. Which of the following government spending and taxation figures will keep the debt to-income ratio
constant? a. government spending equal to 30 billion units and tax collections equal to 25 billion units b. government spending equal to 30 billion units and tax collections equal to 20 billion units c. government spending equal to 30 billion units and tax collections equal to 10 billion units d. government spending equal to 30 billion units and tax collections equal to 5 billion units
Monopolies that price discriminate do so because
A. it keeps them out of trouble with the government. B. it is more efficient. C. they can increase their profits. D. they are able to do so and no one else can.