refer to a market in which quantity demanded is given by and quantity supplied by
-If a small unit tax is imposed on this market,the effect of this tax on the price suppliers receive will be greatest when:
A)d is small and b is large.
B)d and b are both small.
C)d and b are both large.
D)d is large and b is small.

Question

refer to a market in which quantity demanded is given by  and quantity supplied by 
-If a small unit tax is imposed on this market,the effect of this tax on the price suppliers receive will be greatest when:​
A)​d is small and b is large. 
B)​d and b are both small. 
C)​d and b are both large. 
D)​d is large and b is small.

Quizplus · Accepted Answer

The effect of a tax on the price suppliers receive is greatest when demand is small and supply is large. This is because the tax will cause the supply curve to shift to the left, and the smaller the demand, the greater the impact of this shift on the price.

Refer to a Market in Which Quantity Demanded Is Given