As a result of a per-unit tax on output in a market:
a. the quantity traded increases

b. the quantity traded does not change.
c. the quantity traded decreases.
d. a surplus is created at the new equilibrium price.

c

Economics

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A firm setting a two-part tariff with only one customer should set the entry fee equal to

A) marginal cost. B) consumer surplus. C) marginal revenue. D) price.

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If the current year CPI is 90, then the price level has decreased 10 percent since the base year

a. True b. False Indicate whether the statement is true or false

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