Suppose the government levies a tax on all computers sold in the United States.Assume that all goods are normal goods.Which of the following results is a spillover complementary effect of the tax?
A) People buy fewer computers because they are now more expensive.
B) People buy fewer computers because people have less income.
C) People buy more books because they spend less money on computers.
D) People buy fewer computer printers because of the tax.
Correct Answer:
Verified
Q17: Suppose the pre-tax price of cigarettes is
Q18: Suppose the pretax price of gasoline is
Q19: Suppose the pre-tax price of cigarettes is
Q20: Which statement is TRUE regarding a $1
Q21: What does the Congressional Budget Office assume
Q23: Suppose the wage of unskilled workers is
Q24: Which statement is TRUE?
A) Effective excise tax
Q25: Suppose the government were to tax all
Q26: In a labor market in which demand
Q27: Balanced budget incidence takes into account:
A) the
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