The imposition of a unit excise tax on beer will
A) lower equilibrium price and quantity in the market.
B) increase equilibrium quantity and price in the market.
C) lower equilibrium quantity and raise equilibrium price in the market.
D) raise equilibrium quantity and lower equilibrium price in the market.
C
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Victor currently produces nuts and bolts at point a in the figure. Victor's marginal cost of producing an additional nut is ________
A) 1 bolt per nut B) 1/2 bolt per nut C) 8/6 bolts per nut D) 8 bolts per nut
In their surveys of consumers, Daniel Kahneman, Jack Knetsch and Richard Thaler found that
A) most people considered an increase in price by firms following an increase in their costs to be fair but believed it was unfair for firms to raise their prices because of an increase in demand. B) most people considered it unfair for firms to raise their prices because of an increase in their costs, but fair to raise their prices after an increase in demand. C) most people believed that low-income people were hurt most by increases in prices. D) most people considered any increase in price to be unfair as it led to an increase in profits.
Assume a portfolio in which there is equal investment in two assets that are perfectly negatively correlated, with equally expected returns of 10 percent and 6 percent for asset A and 8 percent and 4 percent for asset B
The expected yield on this portfolio is A) 8 percent. B) 7 percent. C) 6 percent. D) 5 percent.
If the supply of labor to a monopsonist is everywhere unit elastic, and the marginal expenditure equals $1, then the wage will equal
A) $0.50. B) $0.75. C) $1.00. D) $2.00.