Refer to the graph shown. The burden of the tax is borne entirely by sellers in graphs:
A. C and D.
B. B and C.
C. B and D.
D. A and D.
Answer: D
You might also like to view...
When the city of Fresno holds a referendum to determine if taxes will be raised to pay for road repairs, the city is using a ________ allocation method
A) majority rule B) market price C) contest D) personal characteristics E) command
If the demand of a good is inversely related to income, it must be
A) a bad good. B) an inferior good. C) a normal good. D) an everyday product.
If there is diminishing marginal utility of income, then it may increase social welfare (assuming that it is reasonable to compare utility levels among people) to increase taxes on
a. the incomes of the rich and give the funds to the poor b. the incomes of the poor to provide funds for job training c. cigarettes d. the incomes of the poor and give it to the richer classes e. consumption goods
An increase in the interest rate will
A) decrease the price of bonds. B) increase the price of bonds. C) increase or decrease the price of bonds depending upon whether the money supply has increased or decreased. D) leave the price of bonds unchanged.