• 2022-06-06
    Which of the following would increase quantity supplied, increase quantity demanded, and decrease the price that consumers pay? ( )
    A: the imposition of a binding price floor .
    B: the removal of a binding price floor.
    C: the passage of a tax levied on producers.
    D: the repeal of a tax levied on producers .
  • D
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    • 0

      If a quantity tax is collected from competitive suppliers of a good, placing a tax on the good causes the price paid by consumers to increase more than if the tax had been collected directly from the buyers.

    • 1

      Which of the following would unambiguously cause a decrease in the equilibrium price of cotton shirts? ( ) A: an increase in the price of wool shirts and a decrease in the price of raw cotton B: a decrease in the price of wool shirts and a decrease in the price of raw cotton. C: an increase in the price of wool shirts and an increase in the price of raw cotton. D: a decrease in the price of wool shirts and an increase in the price of raw cotton.

    • 2

      Suppose that the current price in a market for Pizza is $9. At that price, the quantity demanded is 519 and the quantity supplied is 400. In this market, we would expect that:

    • 3

      Which of the following would increase the price level? A: an increase in taxes. B: an increase in the money supply. C: an increase in the expected price level. D: a decrease in the natural rate of unemployment.

    • 4

      Consider a market with a downward sloping demand curve and an upward sloping supply curve. A $50 tax levied on the producer of the good will cause the market price to: A: increase by $50 B: decrease by $50. C: increase by less than $50. D: increase by more than $50.