Question 1

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

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Question 2

A tax imposed on the buyers of a good will

Accepted Answer

A tax imposed on the buyers of a good will increase the price buyers pay by the amount of the tax. This increase in price will lower demand for the good, decreasing the quantity sold and shifting the demand curve leftward. As a result, the effective price sellers receive will be lower than before the tax was imposed. So, a tax imposed on the buyers of a good will raise the price buyers pay and lower the effective price sellers receive.

Question 3

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

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Question 4

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

When the tax is reduced from $50 to $30, the overall cost to buyers decreases by $20. This means that the demand curve will shift upward by $20. However, the effective price received by sellers will not increase by the full $20 because they will need to pass some of the savings from the reduced tax onto buyers in order to remain competitive. Thus, the effective price received by sellers will increase by less than $20.

Question 5

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 buyers, the price they pay increases, leading to a decrease in quantity demanded. This results in a shift of the demand curve to the left. Therefore, the correct answer is B, as there will be a downward shift of the demand curve.

Question 6

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 increases the price that buyers have to pay, which reduces their willingness to buy at every price level, leading to a decrease in demand. Therefore, the tax encourages buyers to demand a smaller quantity at every price. Option A is incorrect because it suggests that the supply of external hard drives will be affected by the tax, which is not necessarily the case.

Question 7

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

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Question 8

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, the demand for tennis racquets decreases, leading to a decrease in market size. This decrease in demand causes the price of tennis racquets to increase as buyers will have to pay the tax in addition to the price. Therefore, the size of the tennis racquet market decreases, but the price paid by buyers increases.

Question 9

Suppose buyers of tequila are required to send $1.00 to the government for every bottle of tequila they buy.Further,suppose this tax causes the effective price received by sellers of tequila to fall by $0.80 per bottle.Which of the following statements is correct?

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Question 10

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

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Question 11

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, it increases the price paid by buyers and decreases their willingness to pay at each quantity, leading to a downward shift in demand by the amount of the tax. Therefore, the correct choice is B.

Question 12

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 they have to pay increases, which reduces the quantity demanded. This results in a downward shift in the demand curve. In other words, at any given price, buyers are now willing to purchase a lower quantity of the product. Therefore, the correct answer is B.

Question 13

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

The tax causes an increase in the price paid by buyers equal to the tax minus the decrease in price received by sellers, which is $1.00 - $0.60 = $0.40. Therefore, statement B is correct. Statement A is incorrect because a tax does not shift the supply curve, but rather the supply curve remains the same while the cost of production for sellers increases. Statement C is incorrect because the burden of the tax falls on both buyers and sellers, but the distribution of the burden is determined by the price elasticity of demand and supply.

Question 14

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

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Question 15

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

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Question 16

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

Accepted Answer

When a tax is levied on buyers, it increases the price paid by buyers and decreases the price received by sellers. This will shift the demand curve downward by the amount of the tax, which in this case is $0.50. Therefore, the correct answer is (C) downward by exactly $0.50.

Question 17

A tax on buyers will shift the

Accepted Answer

A tax on buyers increases the cost to the buyer, leading to a decrease in demand. This is represented by a shift in the demand curve to the left, or downward, by the amount of the tax.

Question 18

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

Accepted Answer

A tax levied on buyers of shoes will increase the price of shoes for the buyers, leading to a decrease in demand. Therefore, the demand curve for shoes will shift down by the amount of the tax, which in this case is $3. The supply curve is not affected by this tax as it is imposed on the buyers, not the suppliers.

Question 19

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 due to the increased cost for buyers. This decrease in demand leads to a decrease in the size of the cell phone market. However, the decrease in demand also puts downward pressure on the effective price received by sellers. Therefore, both the size of the cell phone market and the effective price received by sellers decrease.

Question 20

When a tax is levied on buyers of tea,

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Quiz 6: Supply,demand,and Government Policies

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

A tax imposed on the buyers of a good will

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

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

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

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

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

Suppose buyers of tequila are required to send $1.00 to the government for every bottle of tequila they buy.Further,suppose this tax causes the effective price received by sellers of tequila to fall by $0.80 per bottle.Which of the following statements is correct?

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 imposed on the buyers of a good,the demand curve shifts

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

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

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

A tax on buyers will shift the

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

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

When a tax is levied on buyers of tea,