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) 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
Q34: If the government levies a $0.25 tax
Q35: A $2.00 tax levied on the sellers
Q36: A tax on sellers will shift the
A)demand
Q37: A tax imposed on the buyers of
Q38: A tax imposed on the buyers of
Q40: If the government levies a $5 tax
Q41: A tax on buyers will shift the
A)demand
Q42: If the government removes a $2 tax
Q44: If the government passes a law requiring
Q299: Which of the following is not correct?
A)Taxes
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