Refer to Figure 6.8. Suppose that your city imposes a tax of $100 per apartment and the supply curve is a vertical line at Q = 10,000. Then:
A. consumers pay the whole amount of the tax.
B. landlords pay the whole amount of the tax.
C. consumers and landlords split the tax.
D. There is not sufficient information.
Answer: B
You might also like to view...
Refer to Table 11.1. If exports decrease by 30, what is the new equilibrium level of output?
A) 1,700 B) 2,300 C) 6,800 D) 9,200
Which of the following statements is true of the demand curve and the marginal revenue curve of a monopolist?
A) Both curves have the same intercept on the price axis. B) The demand curve is downward sloping while the marginal revenue curve is upward sloping. C) The intercept of the demand curve on the price axis is higher than the intercept of the marginal revenue curve. D) The intercept of the demand curve on the price axis is lower than the intercept of the marginal revenue curve.
If too many high risk policyholders migrate to a comprehensive health insurance plan which covers a wide range of treatments, the price of a policy must increase
Indicate whether the statement is true or false
The ________ model suggests that that the productivity of employees in a firm will increase if the firm offers lifetime employment and a high salary.
A. happy-is-productive B. good-citizen C. only-money-matters D. product-of-the-environment