If a tax is imposed on each unit of a good purchased, ________
A) the supply curve shifts to the right
B) the supply curve shifts to the left
C) the demand curve shifts to the right
D) the demand curve shifts to the left
D
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If the market price of a product is $14 and all sellers are price takers, then which of the following is correct?
A) Each seller's total revenue line is graphed as an upward-sloping straight line. B) The demand curve for each seller's product is a downward-sloping straight line. C) Each seller can earn more total revenue by raising the price he or she charges above $14. D) The demand curve for each seller's product is a downward-sloping but not necessarily a straight line. E) Each seller's total revenue is graphed as an upside-down U-shaped curve.
What is equity, and how does it differ from efficiency?
What will be an ideal response?