Refer to the graph. Which of the lines in the diagram represent(s) a regressive tax?
A. Both A and B.
B. D only.
C. C only.
D. B only.
B. D only.
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Assume that the market for corn is perfectly competitive. Currently, firms growing corn are generating losses. In the long run, we can expect
A. new firms to enter, causing the market price of corn to decrease. B. some firms to exit, causing the market price of corn to increase. C. some firms to exit, causing the market price of corn to decrease. D. new firms to enter, causing the market price of corn to increase.
Consumers are generally willing to spend more time researching cars before making a purchase than they do researching paper towels because: a. the cost of gathering information about paper towels is very small
b. the cost of gathering information about cars is less than the cost of gathering information about paper towels. c. the cost of gathering information about cars is less than the cost of gathering information about paper towels. d. the net benefit from gathering additional information about paper towels is likely much greater than the net benefit derived from gathering additional information about cars.
A monopolist can earn a positive economic profit, even in the long run
a. True b. False Indicate whether the statement is true or false
The table below shows how the marginal benefit of car washes varies for Carol with the number purchased per month.Car washes per monthMarginal benefit of purchasing an additional car wash1$6.002$5.003$4.004$3.005$2.00The price of each car wash is reduced from $2.99 to $1.99. Assuming that the price of a car wash accurately reflects the marginal cost to Carol and that she is rational, she will increase the number of car washes purchased per month from:
A. one to two. B. two to three. C. three to four. D. four to five.