The government raises the sales tax on shirts. The tax is imposed on sellers. As a result, the ________
A) supply curve of shirts shifts leftward
B) supply curve of shirts shifts rightward
C) demand curve for shirts becomes vertical
D) demand curve for shirts becomes horizontal
A
Economics
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Assuming no change in the nominal exchange rate, how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will fall. B) The real exchange rate will be unaffected. C) The real exchange rate will rise. D) The impact on the real exchange rate cannot be predicted.
Economics
Market economies rely on which of the following to allocate scarce resources?
a. government b. consumers c. relative prices d. real interest rates
Economics