Suppose a tax on buyers has been imposed in the graph shown. Once the tax is in place, the buyers purchase ____ units and pay ____ for each one.
A. 6; $22
B. 6; $34
C. 9; $18
D. 9; $30
B. 6; $34
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The best definition of inflation is a(n):
A. decrease in the general price level. B. increase in the price of one important commodity such as food. C. persistent increase in the general level of prices as measured by a price index. D. increase in the purchasing power of the dollar.
On the above graph, if the oligopolist's MC curve shifts from MC1 to MC2, the firm will charge:
A. the same price and sell more output; total revenue will increase. B. the same price and sell the same amount of output; total revenue will remain the same. C. a higher price and sell less output; it can't be determined whether total revenue will increase. D. a higher price and total revenue will increase.
The agreement between the U.S., the Dominican Republic and five small Central American countries that will eventually eliminate tariffs among all seven nations is called
A. NAFTA. B. CAFTA. C. Mercosur. D. GATT.
An increase in demand will cause the equilibrium price and quantity to rise, ceteris paribus.
Answer the following statement true (T) or false (F)