Question 1

If a tax is levied on the sellers of a product, then the supply curve will

Accepted Answer

When a tax is levied on the sellers of a product, their cost of production increases, leading to lower profitability for each unit sold. To maintain their current level of profits, sellers will increase the price of the product, resulting in a shift of the supply curve upwards.

Question 2

If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then

Accepted Answer

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

Question 3

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

Accepted Answer

When a tax is placed on sellers of a product, it increases the cost of production for the sellers. As a result, they will pass on some portion of the tax to the buyers by raising the price of the product. So, buyers will pay more than they did before the tax. However, sellers will receive less than they did before the tax due to the increased cost of production. Thus, option B is the correct choice.

Question 4

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

Accepted Answer

When a tax is placed on the sellers of cell phones, the cost of producing the phone increases, which leads to a decrease in the supply of cell phones in the market. This reduced supply puts upward pressure on the price of cell phones, leading to an increase in the price paid by buyers. Hence the market size decreases while the price paid by buyers increases.

Question 5

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

Accepted Answer

When a tax is levied on the sellers of a product, the cost of production for the sellers increases, leading to a decrease in supply. This means that sellers are willing to supply less quantity at the same price, leading to an upward shift of the supply curve.

Question 6

A tax levied on the sellers of blueberries

Accepted Answer

The answer of A tax levied on the sellers of...

Question 7

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

Accepted Answer

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

Question 8

A tax on the sellers of coffee mugs

Accepted Answer

A tax on the sellers of coffee mugs will increase the cost of production for the sellers, which will lead to an increase in the price of coffee mugs for consumers. As a result, the demand for coffee mugs will decrease, leading to a decrease in the size of the coffee mug market.

Question 9

A tax on sellers will shift the

Accepted Answer

A tax on sellers increases their costs, leading to a decrease in supply. This will cause the supply curve to shift upward by the amount of the tax. It will not affect the demand curve directly.

Question 10

A tax on the sellers of coffee will increase the price of coffee paid by buyers,

Accepted Answer

A tax on the sellers of coffee increases the cost of production for sellers, which decreases the effective price received by sellers. This decrease in effective price will discourage sellers from producing as much coffee, which will decrease the equilibrium quantity of coffee. Moreover, as the price of coffee increases, buyers will demand less coffee, which also decreases the equilibrium quantity of coffee.

Question 11

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

Accepted Answer

When a tax is levied on the sellers of a product, the cost of production increases for the sellers, so they will have to increase the price of the product to cover the cost of the tax. As a result, the price of the product will increase, which will cause a decrease in the quantity demanded as consumers will be less willing to buy the product at the higher price. This will lead to a movement along the same demand curve, not a shift in the demand curve.

Question 12

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

Accepted Answer

A tax on the sellers of a good will increase the cost of production for the sellers, leading to a decrease in the supply of the good. This will cause the price of the good to increase, which will result in a lower quantity demanded by buyers. Thus, the price paid by buyers will increase and the equilibrium quantity will decrease.

Question 13

If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would

Accepted Answer

The tax will increase the cost for sellers, but they may not pass on the entire $1,000 to buyers. Some sellers may choose to absorb some of the cost themselves in order to stay competitive. Therefore, the price paid by buyers will increase by less than $1,000.

Question 14

If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would

Accepted Answer

The answer of If the government levies a $500 tax...

Question 15

A tax on the buyers of cameras encourages

Accepted Answer

When a tax is imposed on the buyers of a good, it increases the price paid by the buyer. As a result, buyers have to pay more for the camera and this decreases their purchasing power. This decrease in purchasing power leads to a decrease in the quantity demanded at every price level. Therefore, option B is the correct answer. Option A is incorrect because sellers are not incentivized to supply a smaller quantity at every price, they are just receiving a lower price due to the tax. Option C is also incorrect because sellers are not incentivized to supply a larger quantity at every price, but they will supply less due to the decrease in demand resulting from the tax. Option D is incorrect because only option B is correct.

Question 16

When a tax is levied on sellers of tea,

Accepted Answer

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

Question 17

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

Accepted Answer

The demand curve does not shift when a tax is levied on sellers; instead, the supply curve shifts, reflecting the increased costs to sellers.

Question 18

Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose this tax causes the price paid by buyers of perfume to rise by $0.60 per bottle. Which of the following statements is correct?

Accepted Answer

Option A is correct because the tax is $1.00, but the price paid by buyers goes up by only $0.60. The sellers have to pay the remaining $0.40 out of their own pockets, so the effective price they receive per bottle is $0.40 less than it was before the tax.

Option B is incorrect because we do not have enough information to determine how the burden of the tax is divided between buyers and sellers.

Option C is also incorrect because the demand curve does not shift downward by $1.00 at each quantity of perfume. The tax increases the price paid by buyers, which may reduce the quantity demanded, but the quantity demanded will not necessarily decrease by exactly $1.00 at each level.

Question 19

A tax imposed on the sellers of a good will

Accepted Answer

When a tax is imposed on the sellers of a good, they will increase the price of the good to cover the cost of the tax. This means that buyers will pay a higher price than they would have without the tax. However, the effective price received by sellers will be lower, as they will need to pay the tax out of their revenue. Therefore, a tax imposed on sellers will raise the price buyers pay and lower the effective price sellers receive.

Question 20

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

Accepted Answer

When a tax is imposed on the sellers of a good, the cost of production for the sellers increases. This leads to the sellers increasing the price of the good to maintain their profit levels. As the price increases, the quantity demanded by buyers decreases, leading to a decrease in the equilibrium quantity. Therefore, a tax imposed on sellers will raise the price paid by buyers and lower the equilibrium quantity.

Quiz 6: Supply, Demand, and Government Policies

If a tax is levied on the sellers of a product, then the supply curve will

If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then

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

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

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

A tax levied on the sellers of blueberries

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

A tax on the sellers of coffee mugs

A tax on sellers will shift the

A tax on the sellers of coffee will increase the price of coffee paid by buyers,

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

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

If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would

If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would

A tax on the buyers of cameras encourages

When a tax is levied on sellers of tea,

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

Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose this tax causes the price paid by buyers of perfume to rise by $0.60 per bottle. Which of the following statements is correct?

A tax imposed on the sellers of a good will

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