If the government removes a $2 tax on buyers of cigars and imposes the same $2 tax on sellers of cigars, then the price paid by buyers will
a. not change, and the price received by sellers will not change.
b. not change, and the price received by sellers will decrease.
c. decrease, and the price received by sellers will not change.
d. decrease, and the price received by sellers will decrease.
a
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A backward-bending labor supply curve could possibly imply which of the following cases?
A) Leisure is an inferior good. B) Leisure is a normal good. C) Leisure is a normal good at low wages and inferior at high wages. D) None of the above.
If all variable taxes in the United States were removed and only fixed taxes remained, what would be the effect on the expenditures schedule?
a. The expenditure schedule will shift upward and become steeper. b. The expenditure schedule will shift upward and become less steep. c. The expenditure schedule will shift downward and become less steep. d. The expenditure schedule will shift downward and become steeper.