In this case, how much of the $5.00 excise tax is paid by the consumer?
Consider the following market for CFC-11, a known ozone-depleting substance:
Demand: Q= 20 – 1.5P Supply: Q= 5+0.5P
whereP is price per pound.
Assume the governmental authority imposes a $5 per pound excise
tax on CFC-11, which shifts the supply function to Q’ = 2.5 +0.5P.Use this information for any or all of the next three questions below.
a. $3.75
b. $2.25
c. $5.00
d. $1.25
e. none of the above
d. $1.25
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On a graph, an upward-sloping curve that is flatter as you move away from the origin indicates a
A) positive relationship with an increasing slope. B) positive relationship with a decreasing slope. C) negative relationship with an increasing slope. D) negative relationship with a decreasing slope.
Which of the following would be most likely to encourage households to save a greater proportion of their income?
a. a reduction in the sales tax rate b. an increase in the capital gains tax rate c. an elimination of tariffs (taxes on imported goods) d. changing to a flat income tax (with a single tax rate charged on all income) e. changing from an income tax to a consumption tax
Which of the following countries has had the more successful transition?
a. Poland b. Russia c. Kazakstan d. Georgia e. Kyrgystan
The word "monopolistic" in the label "monopolistic competition" refers to the fact that:
A. there is only one firm producing in the market. B. firms have no control over the price they charge. C. each firm produces a slightly different version of the product. D. None of these