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) demand curve will shift upward by $20, and the price paid by buyers will decrease by less than $20.
B) demand curve will shift upward by $20, and the price paid by buyers will decrease by $20.
C) supply curve will shift downward by $20, and the effective price received by sellers will increase by less than $20.
D) supply curve will shift downward by $20, and the effective price received by sellers will increase by $20.
Correct Answer:
Verified
Q28: A tax imposed on the buyers of
Q33: When a tax is placed on the
Q40: If the government levies a $5 tax
Q44: If the government passes a law requiring
Q55: If a tax is levied on the
Q59: When a tax is imposed on the
Q60: If a tax is levied on the
Q250: A $0.50 tax levied on the buyers
Q252: Suppose buyers of vodka are required to
Q253: If the government levies a $2 tax
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents