Suppose there is currently a tax of $50 per ticket on airline tickets.Sellers 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
A) the demand curve will shift upward by $20,and the effective price received by sellers will increase by $20.
B) the demand curve will shift upward by $20,and the effective price received by sellers will increase by less than $20.
C) the supply curve will shift downward by $20,and the price paid by buyers will decrease by $20.
D) the supply curve will shift downward by $20,and the price paid by buyers will decrease by less than $20.
Correct Answer:
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A) shift the
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