Suppose there is currently a tax of $50 per ticket on airline tickets. Buyers 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 effective price received by sellers will increase by $20.
b. demand curve will shift upward by $20, and the effective price received by sellers will increase by less than $20.
c. supply curve will shift downward by $20, and the price paid by buyers will decrease by $20.
d. supply curve will shift downward by $20, and the price paid by buyers will decrease by less than $20.
b
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History and Adam Smith both point out that people of the same trade
a. often face the temptation to engage in collusion. b. rarely consider engaging in collusion. c. meet only to consider how to improve the quality of their products. d. scrupulously avoid engaging in discussions about their trade since they are competitors.
It is possible that an increase in wages will lead to a decrease in the quantity of labor supplied.
Answer the following statement true (T) or false (F)