To finance medical care, the federal government raises the tax per pack paid by sellers of cigarettes. Other things being equal, the price of cigarettes rises because of a(n):
a. upward movement along the supply curve for cigarettes.
b. rightward shift of the supply curve for cigarettes.
c. upward movement along the demand curve for cigarettes.
d. leftward shift of the supply curve for cigarettes.
d
Economics
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If marginal cost is zero, with an optimal two-part tariff
A) total revenue is maximized. B) the firm does not have to charge a fixed-fee portion. C) consumers maximize their surplus D) firms may not maximize profit.
Economics
If the central bank cannot commit, then
A) the leader of the central bank wants to quit. B) the outcome is good for the macroeconomy. C) the central bank cannot stop itself from exploiting the Phillips curve. D) the Phillips curve is stable.
Economics