Suppose that an ad valorem tax of 10% is imposed on consumers of butter. The bread market supply is Qs = 10 + P and the bread market demand is Qd = 220-P. What is the consumers' tax burden?
A) Consumers' tax burden is $3.
B) Consumers' tax burden is $10
C) Consumers' tax burden is $5.
D) Consumers' tax burden is $2.
C
Economics
You might also like to view...
If the money wage rate and other resource prices do not change when the price level rises by 10 percent, ________
A) the long-run aggregate supply curve shifts leftward B) the short-run aggregate supply curve shifts leftward C) the long-run aggregate supply curve shifts rightward D) there is movement along the short-run aggregate supply curve
Economics
A bank is "loaned up" when
A) legal reserves are zero. B) excess reserves are zero. C) primary reserves are zero. D) required reserves are zero.
Economics