The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. The tax decreases consumption by
A) 1,000 blouses.
B) 2,000 blouses.
C) 3,000 blouses.
D) 4,000 blouses.
A
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The relationship between economic inputs and outputs is
a. productivity b. capital c. production function d. factors of production e. none of the above
Suppose that Cathy spends all of her income on 20 units of good X and 25 units of good Y. Cathy's marginal utility from the 20th unit of good X is 9 utils, and her marginal utility from the 25th unit of good Y is 19 utils. If the price of good X is $0.50 per unit and the price of good Y is $1.00 per unit, then to comply with the rational spending rule, Cathy should:
A. purchase more than 20 units of good X and more than 25 units of good Y. B. purchase more than 20 units of good X and less than 25 units of Y. C. continue to purchase 20 units of good X and 25 units of good Y. D. purchase less than 20 units of good X and more than 25 units of good Y.