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.
A: increase by $50
B: decrease by $50.
C: increase by less than $50.
D: increase by more than $50.
举一反三
- 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:
- An increase in market supply and an increase in market demand will result in A: A decrease in equilibrium price and an increase in equilibrium quantity B: A decrease in equilibrium price - the change in equilibrium quantity is indeterminate C: An increase in equilibrium quantity and the change in price is unclear D: all of above
- A $5 tax per gallon of paint placed on the buyers of paint will shift the demand curve A: downward by exactly $5. B: downward by less than $5. C: upward by exactly $5. D: upward by less than $5.
- Which of the following would cause price to decrease? A: a decrease in supply B: an increase in demand C: a surplus of the good D: a shortage of the good
- Which of the following always raises the equilibrium price? A: an increase in both demand and supply B: a decrease in both demand and supply C: an increase in demand combined with a decrease in supply D: a decrease in demand combined with an increase in supply