Refer to Figure 4-16. Suppose the market is initially in equilibrium at price P1 and now the government imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax? For demand curve D1
A) the producer's share of the tax burden is the same whether the supply curve is S1 or S2.
B) the producer bears a greater share of the tax burden if the supply curve is S2.
C) the producer bears a greater share of the tax burden if the supply curve is S1.
D) the producer bears the entire burden of the tax if the supply curve is S1 and the consumer bears the entire burden of the tax if the supply curve is S2.
B
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Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only teapots, it can make 80 per day. If Arcadia produces only surfboards, it can make 30 per day
What is the opportunity cost of 1 teapot in Arcadia? A) 3/8 of a surfboard B) 8/3 surfboards C) 30 surfboards D) 80 surfboards
The supply schedule shows the specific quantity of a good that suppliers are willing and able to:
a. demand at various prices. b. produce at various costs. c. hold back from the market when competition is reduced. d. provide at different prices. e. demand at various costs.