Question 1

Suppose there is currently a tax of $50 per ticket on airline tickets.Buyers of airline tickets are required to pay the tax to the government.If the tax is reduced from $50 per ticket to $30 per ticket,then the

Accepted Answer

A reduction in tax lowers the overall cost of the product for consumers, which increases the quantity demanded at each price level. Therefore, the demand curve will shift upward. However, the effective price received by sellers will not increase by the full amount of the tax reduction ($20) because they will have to lower their prices somewhat to attract more buyers. As a result, the effective price increase for sellers will be less than $20. The supply curve, on the other hand, is unaffected by the tax change, so option C and D are incorrect.

Question 2

A tax on buyers will shift the

Accepted Answer

A tax on buyers will increase the price of the good, leading to a decrease in quantity demanded at every price level. This results in a downward shift of the demand curve by the amount of the tax. The supply curve remains unchanged.

Question 3

A tax imposed on the buyers of a good will

Accepted Answer

A tax imposed on the buyers of a good will increase the overall price buyers pay because they must now pay the market price plus the tax. However, it will lower the effective price that sellers receive because buyers are now willing to pay less for the same quantity of goods due to the added tax cost. Therefore, the tax will both raise the price buyers pay and lower the effective price sellers receive.

Question 4

A tax imposed on the buyers of a good will raise the

Accepted Answer

A tax imposed on buyers of a good will increase the price they pay, as they have to pay for the tax in addition to the actual price of the good. This increase in price will result in a decrease in the quantity demanded, which will lower the equilibrium quantity. Thus, option A is the correct answer.

Question 5

A $3 tax levied on the buyers of shoes will cause the

Accepted Answer

A tax on buyers is a factor that affects demand, not supply. When the price of shoes increases by $3 due to the tax, buyers are likely to purchase fewer shoes, and the demand curve will shift downwards by $3. Therefore, choice C is the correct answer.

Question 6

When a tax is levied on buyers of tea,

Accepted Answer

The answer of When a tax is levied on buyers...

Question 7

When a tax is placed on the buyers of a product,the

Accepted Answer

The answer of When a tax is placed on the...

Question 8

A tax on the buyers of personal computer external hard drives encourages

Accepted Answer

A tax on the buyers of personal computer external hard drives would increase the price of the product for the buyer, thus reducing the quantity demanded at every price point. In other words, buyers would demand a smaller quantity at every price. Option A is incorrect because the tax would not necessarily affect the supply quantity from sellers, as that would depend on their production costs and willingness to pay the tax. Option C is incorrect because the tax would not encourage buyers to demand a larger quantity at every price. Option D is incorrect because only option B is correct.

Question 9

If the government levies a $5 tax per ticket on buyers of NFL game tickets,then the price paid by buyers of NFL game tickets would

Accepted Answer

The answer of If the government levies a $5 tax...

Question 10

A $0.50 tax levied on the buyers of pomegranate juice will shift the demand curve

Accepted Answer

When a tax is levied on the buyers of a product, it increases the price that buyers pay and reduces the price that sellers receive. As a result, the demand curve for the product shifts downward by the amount of the tax, which in this case is $0.50. Therefore, the correct choice is C.

Question 11

If a tax is levied on the buyers of a product,then there will be a(n)

Accepted Answer

When a tax is levied on the buyers of a product, the price of the product for the buyers increases. This leads to a decrease in the quantity demanded of the product, which results in a downward shift of the demand curve.

Question 12

Suppose buyers of vodka are required to send $1.00 to the government for every bottle of vodka they buy.Further,suppose this tax causes the effective price received by sellers of vodka to fall by $0.60 per bottle.Which of the following statements is correct?

Accepted Answer

Option A is incorrect because a tax causes the supply curve to shift upward by the amount of the tax, not by the reduced price to sellers. 
Option C is incorrect because the burden of the tax is shared between buyers and sellers depending on their relative elasticities of demand and supply. We do not have enough information to determine the exact distribution. 
Option D is incorrect because only option B is correct, as explained above.

Question 13

If the government levies a $2 tax per DVD on buyers of DVDs,then the price received by sellers of DVDs would

Accepted Answer

When a tax is levied on buyers, the demand curve shifts downward by the amount of the tax. The price received by sellers decreases by less than the tax amount because the tax burden is shared between buyers and sellers depending on the price elasticity of demand and supply.

Question 14

Suppose there is currently a tax of $50 per ticket on airline tickets.Buyers of airline tickets are required to pay the tax to the government.If the tax is reduced from $50 per ticket to $30 per ticket,then the

Accepted Answer

The answer of Suppose there is currently a tax of...

Question 15

If the government passes a law requiring buyers of college textbooks to send $5 to the government for every textbook they buy,then

Accepted Answer

The answer of If the government passes a law requiring...

Question 16

When a tax is placed on the buyers of tennis racquets,the size of the tennis racquet market

Accepted Answer

When a tax is placed on the buyers of tennis racquets, the size of the market decreases because buyers are discouraged from buying at the higher price. As a result, sellers have to reduce their prices to entice buyers to purchase, which leads to a decrease in the price paid by buyers. Therefore, the size of the market decreases and the price paid by buyers increases.

Question 17

When a tax is imposed on the buyers of a good,the demand curve shifts

Accepted Answer

When a tax is imposed on the buyers of a good, the demand curve shifts downward by the amount of the tax. This is because the tax increases the overall cost of the good to the buyer, reducing the quantity demanded at each price level. As a result, the demand curve shifts downward, indicating that buyers are willing to purchase less of the good at every price level.

Question 18

A tax imposed on the buyers of a good will lower the

Accepted Answer

The answer of A tax imposed on the buyers of...

Question 19

If a tax is levied on the buyers of a product,then the demand curve will

Accepted Answer

When a tax is levied on the buyers of a product, the price the buyers pay for the product increases, which reduces the quantity demanded. This leads to a downward shift in the demand curve.

Question 20

When a tax is placed on the buyers of cell phones,the size of the cell phone market

Accepted Answer

When a tax is placed on the buyers of cell phones, the demand for cell phones decreases because the buyers have to pay a higher price, leading to a decrease in market size. Meanwhile, the effective price received by sellers also decreases because buyers are not willing to pay as much. Therefore, both market size and effective price received by sellers decrease.

Quiz 6: Supply, Demand, And Government Policies.

Suppose there is currently a tax of $50 per ticket on airline tickets.Buyers of airline tickets are required to pay the tax to the government.If the tax is reduced from $50 per ticket to $30 per ticket,then the

A tax on buyers will shift the

A tax imposed on the buyers of a good will

A tax imposed on the buyers of a good will raise the

A $3 tax levied on the buyers of shoes will cause the

When a tax is levied on buyers of tea,

When a tax is placed on the buyers of a product,the

A tax on the buyers of personal computer external hard drives encourages

If the government levies a $5 tax per ticket on buyers of NFL game tickets,then the price paid by buyers of NFL game tickets would

A $0.50 tax levied on the buyers of pomegranate juice will shift the demand curve

If a tax is levied on the buyers of a product,then there will be a(n)

Suppose buyers of vodka are required to send $1.00 to the government for every bottle of vodka they buy.Further,suppose this tax causes the effective price received by sellers of vodka to fall by $0.60 per bottle.Which of the following statements is correct?

If the government levies a $2 tax per DVD on buyers of DVDs,then the price received by sellers of DVDs would

Suppose there is currently a tax of $50 per ticket on airline tickets.Buyers of airline tickets are required to pay the tax to the government.If the tax is reduced from $50 per ticket to $30 per ticket,then the

If the government passes a law requiring buyers of college textbooks to send $5 to the government for every textbook they buy,then

When a tax is placed on the buyers of tennis racquets,the size of the tennis racquet market

When a tax is imposed on the buyers of a good,the demand curve shifts

A tax imposed on the buyers of a good will lower the

If a tax is levied on the buyers of a product,then the demand curve will

When a tax is placed on the buyers of cell phones,the size of the cell phone market