In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $800 per month in tax revenue. We can conclude that the equilibrium
quantity of widgets has fallen by
a. 40 per month.
b. 50 per month.
c. 75 per month.
d. 100 per month.
a
Economics
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A public good is
a. any good provided by government. b. a good that can be most cheaply provided by government, though it may in fact be provided by private enterprise. c. a good whose benefits cannot readily be restricted to a small group of people. d. a good whose benefits cannot be enjoyed by an individual alone.
Economics
All of the following are arguments in favor of restricting trade EXCEPT
A) comparative advantage. B) protecting domestic jobs. C) protecting emerging industries. D) dumping.
Economics