If a good has a tax levied on it, sellers respond to the price that excludes the tax and not the price with the tax because
A) the tax is handed over to the state directly by buyers.
B) sellers do not get to keep the tax revenue.
C) the demand for the good has decreased.
D) the quantity supplied of the good increases.
E) demanders pay none of the tax.
B
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If the total utility Jack receives from 10 gallons of gasoline is 16, and the total utility Jack receives from 11 gallons of gasoline is 20, the marginal utility of the 11th gallon of gasoline is
a. 1 b. 4 c. 7 d. 20 e. 21
Entry into a monopolistically competitive industry is
a. easy, but exiting is difficult b. difficult, but exiting is easy c. difficult, but not impossible d. impossible e. easier than entry into oligopoly
The economy is currently operating at a point on its physical production possibilities frontier (physical PPF). It is
A) producing Natural Real GDP and operating below the natural unemployment rate. B) producing more than Natural Real GDP and operating above the natural unemployment rate. C) producing more than Natural Real GDP and operating below the natural unemployment rate. D) in long-run equilibrium.
An arrangement between firms whereby decision-making is controlled by a board of trustees is known as:
A. a trust. B. a compact between industry and government. C. predatory pricing. D. a merger.