Question 1

When a tax is imposed on the sellers of a good,the supply curve shifts

Accepted Answer

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

Question 2

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 the

Accepted Answer

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

Question 3

A tax levied on the sellers of blueberries

Accepted Answer

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

Question 4

A tax on sellers will shift the

Accepted Answer

A tax on sellers increases their costs of production, which will lead to a decrease in supply. This will result in a shift of the supply curve upward by the amount of the tax.

Question 5

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

Accepted Answer

A tax on buyers will increase the price paid by buyers, reducing their effective price. This will lead to a decrease in demand and a decrease in the equilibrium quantity of cereal. The effective price received by sellers will also decrease. This is because buyers will be willing to pay less for the cereal and therefore sellers will have to accept a lower price to sell their product. Therefore, both the price and quantity of cereal will decrease.

Question 6

A $0.10 tax levied on the sellers of chocolate bars will cause the

Accepted Answer

The tax on sellers will increase their cost of production, which means they will supply less of the good at every price level. This leads to a shift in the supply curve to the left (upward shift) by the amount of the tax, which in this case is $0.10. Therefore, the correct answer is B.

Question 7

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 sellers, it increases their costs, leading to a higher price for consumers and a movement up and to the left along the demand curve as quantity demanded decreases.

Question 8

When a tax is levied on sellers of tea,

Accepted Answer

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

Question 9

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 the

Accepted Answer

A reduction in taxes paid by sellers will lead to a decrease in their costs of production. This, in turn, will shift the supply curve downward by the amount of the tax reduction, which is $20 in this case. As a result, the price paid by buyers will also decrease, but by less than $20 because some portion of the tax reduction will be passed on to buyers in the form of lower prices, while the rest will increase the profit margins of sellers. Therefore, the supply curve will shift downward by $20, and the price paid by buyers will decrease by less than $20.

Question 10

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, making it less profitable to produce the product. This results in a decrease in the quantity supplied of the product at each price level, causing an upward shift of the supply curve. Therefore, option B is the correct answer.

Question 11

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

Accepted Answer

When a tax is placed on the buyers of a product, buyers pay more than they did before the tax. This results in a decrease in demand for the product, which in turn forces sellers to lower their prices to sell their products. Therefore, sellers receive less than they did before the tax.

Question 12

A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

Accepted Answer

The answer of A $2.00 tax levied on the sellers...

Question 13

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 14

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 15

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

Accepted Answer

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

Question 16

A tax on the sellers of cameras encourages

Accepted Answer

A tax on sellers increases their costs of production, which leads to a decrease in supply at every price. Therefore, sellers would supply a smaller quantity at every price. A tax does not directly affect buyers' behavior, so option B is incorrect. Option C is incorrect because a tax on sellers would not encourage them to supply a larger quantity at every price. Option D is incorrect because only option A is correct.

Question 17

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

Accepted Answer

When a tax is levied on sellers, it increases the cost of production for them, which reduces the incentive for them to supply the product to the market. Therefore, the supply curve shifts up, indicating a decrease in the quantity supplied at all given prices.

Question 18

A tax on the buyers of sofas

Accepted Answer

If there is a tax on the buyers of sofas, it will increase the price of the sofas for the buyers. This will decrease the demand for sofas, leading to a decrease in the size of the sofa market.

Question 19

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 sellers have to pay $1.00 to the government for every bottle of perfume sold. As a result, they will try to pass on this tax burden to the buyers by increasing the price by $0.60. Therefore, the effective price received by sellers will be $0.40 less than the price they used to receive before the tax.

Option B is incorrect because it is not mentioned how the burden of the tax is shared between the sellers and the buyers. It is possible that sellers pass on the entire tax burden to buyers, in which case option B would be incorrect.

Option C is also incorrect because the tax does not cause the demand curve for perfume to shift downward. The demand curve shows how much buyers are willing to pay for different quantities of perfume, and this does not change due to the tax. The tax only affects the price paid by buyers, which is shown as a movement along the demand curve.

Question 20

Suppose sellers of liquor are required to send $1.00 to the government for every bottle of liquor they sell.Further,suppose this tax causes the price paid by buyers of liquor to rise by $0.80 per bottle.Which of the following statements is correct?

Accepted Answer

A) This statement is correct because the tax of $1.00 per bottle is a cost to the sellers, which will lead to an increase in the supply curve by the same amount at every quantity of liquor.
B) This statement is correct as sellers will have to bear the cost of the tax, which will leave them with a reduced effective price of $0.20 per bottle.
C) This statement is also correct because buyers now have to pay $0.80 more per bottle due to the tax, which amounts to 80% of the total tax.

Quiz 6: Supply, Demand, And Government Policies.

When a tax is imposed on the sellers of a good,the supply curve shifts

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 the

A tax levied on the sellers of blueberries

A tax on sellers will shift the

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

A $0.10 tax levied on the sellers of chocolate bars will cause the

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

When a tax is levied on sellers of tea,

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 the

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

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

A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

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

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

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

A tax on the sellers of cameras encourages

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

A tax on the buyers of sofas

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?

Suppose sellers of liquor are required to send $1.00 to the government for every bottle of liquor they sell.Further,suppose this tax causes the price paid by buyers of liquor to rise by $0.80 per bottle.Which of the following statements is correct?