A tax placed on buyers of tuxedoes shifts the
a. demand curve for tuxedoes downward, decreasing the price received by sellers of tuxedoes and causing the quantity of tuxedoes to increase.
b. demand curve for tuxedoes downward, decreasing the price received by sellers of tuxedoes and causing the quantity of tuxedoes to decrease.
c. supply curve for tuxedoes upward, decreasing the effective price paid by buyers of tuxedoes and causing the quantity of tuxedoes to increase.
d. supply curve for tuxedoes upward, increasing the effective price paid by buyers of tuxedoes and causing the quantity of tuxedoes to decrease.
b
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The three fundamental questions that any economy must address are:
A) How much will be saved; what will be produced; and how can these goods and services be fairly distributed? B) What goods and services to produce; how will these goods and services be produced; and who receives them? C) What will be the prices of goods and services; how will these goods and services be produced; and who will receive them? D) Who gets jobs; what wages do workers earn; and who owns what property?
An example of a negative externality created in the market system would be
A) poverty. B) unemployment. C) an increased number of bird flu patients. D) water pollution.
In the case of a negative externality, the social marginal cost will
a. exceed the private marginal cost. b. be equal to private marginal cost. c. fall short of private marginal cost. d. bear no significant relation to private marginal cost.
Which of the following is not a characteristic of perfect competition?
a. Many small buyers. b. Different firms sell products with different features. c. Ease of entry into and exit from the market. d. Many small sellers.