Suppose the government imposes a 20-cent tax on the sellers of iced tea. Which of the following is not correct? The tax would
A. discourage market activity.
B. reduce the equilibrium quantity.
C. raise the equilibrium price by 20 cents.
D. shift the supply curve upward by 20 cents.
C. raise the equilibrium price by 20 cents.
Economics
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What will be an ideal response?
Economics
Which of the following is TRUE of the European Union's cap-and-trade program?
A) Firms are taxed based on the their pollution levels. B) Firms are forced to shut down when they exceed their pollution limits. C) Governments subsidize firms to develop devices to reduce pollution. D) Firms can trade pollution permits to meet their pollution limits.
Economics