If a tax is levied on the sellers of a product, then the supply curve will
A. shift up.
B. become flatter.
C. shift down.
D. not shift.
C. shift down.
You might also like to view...
The benevolent social planner wants to extract the ________ the limited resources we have been given, and her objective is to ________ the size of the economic pie
A) greatest amount of happiness from; minimize B) greatest amount of happiness from; maximize C) least productive of; minimize D) least productive of; maximize
Consider a market with just one firm. The demand in the market is p = 18 – Q and the firm has a linear cost function C(Q) = 2Q
a. How much output will this firm produce. What will be the profit and consumers surplus? b. Suppose a second firm with the same cost function enters the market and the two firms compete in a Cournot style (simultaneous output choice). What will be the equilibrium price and quantity in the market? What is the total market profit and CS?