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Question
When the government places a tax on the producer of a good or service
a. the demand curve for the good or service shifts to the right.
b. the demand curve for the good or service shifts to the left.
c. the supply curve for the good or service shifts to the right.
d. the supply curve for the good or service shifts to the left.
e. both the supply and demand curves for the good or service shifts to the left.
Answer
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Related questions
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When the price elasticity of demand is elastic, a consumer is
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b. relatively unresponsive to a change in price.
c. unaffected by a change in price.
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e. completely responsive to a change in price.
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Price gouging laws will usually result in ________ the product in the distressed market.
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c. government setting up an agency to regulate supply of
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The economic entity most likely to engage in price gouging is
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Q:
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b. society faces a trade-off between homelessness and rent control.
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What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
b. He or she will substitute toward the product.
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d. When a binding price ceiling exists, he or she will be willing to pay a lower price.
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Q:
What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
a. Prices in the legal market in the community with a binding price ceiling will rise.
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c. There will be shortages in the community with a binding price ceiling.
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Q:
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a. Legal market prices will rise in the community with a binding price ceiling.
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Q:
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a. because it greatly benefits firms, and they would spend a lot of money to lobby against the laws repeal
b. because it greatly benefits government, which receives additional tax revenue as a result
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Q:
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Q:
Taxing goods with very inelastic supply generates less deadweight loss than taxing goods with very elastic supply because
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c. the change in producer behavior is smaller.
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e. the change in producer behavior is greater.
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Taxing goods with very inelastic demand generates less deadweight loss than taxing goods with very elastic demand because
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A(n) ________ in the elasticity of supply or demand in a market for a good that is taxed would tend to ________ who is legally responsible for paying the tax.a. decrease; broaden b. decrease; have no effect on c. increase; broadend. increase; narrowe. increase; have no effect on
Q:
Peanut butter and jelly are complements. If a tax is imposed on peanut butter, how will that affect the market for jelly?
a. Demand for jelly will increase along with the price.
b. Demand for jelly will decrease along with the price.
c. The supply of jelly will increase and the price will decrease.
d. Both the supply and demand for jelly will increase along with the price.
e. The supply of jelly will decrease and the price will increase.
Q:
A tax on milk would likely cause a decrease in the price ofa. ice cream. b. cheese. c. soymilk.d. nondairy creamer.e. breakfast cereal.
Q:
A tax creates no deadweight loss only when either supply or demand isa. somewhat elastic. b. perfectly elastic. c. perfectly inelastic.d. increasing.e. decreasing.
Q:
The deadweight loss from a tax is likely to be less with a good that hasa. few complements. b. many substitutes. c. few substitutes.d. an elastic demand.e. an elastic supply.