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.
举一反三
- 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 .
- After a lot of work, the artist thought that he had paid the government （）. A: less tax than he should have B: more tax than he should have C: as much tax as usuall D: just enough tax
- When a tax is imposed on a good, the A: supply curve for the good always shifts. B: demand curve for the good always shifts. C: amount of the good that buyers are willing to buy at each price always remains unchanged. D: equilibrium quantity of the good always decreases.
- 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.
- If the tax on a good is doubled, the deadweight loss of the tax