When a sales tax is imposed on sellers, the supply curve shifts so that the vertical distance between the old and the new supply curve equals the
A) sales tax multiplied by the price elasticity of demand.
B) sales tax multiplied by the price elasticity of supply.
C) amount of the sales tax.
D) sales tax divided by the price elasticity of demand.
C
Economics
You might also like to view...
Risk-sharing forms of compensation are beneficial if employee are
A) risk preferring. B) risk neutral. C) risk averse. D) prefer more to less.
Economics
Other things being constant, an economy must give up some consumer goods and services today to produce more capital goods in order to grow
a. True b. False Indicate whether the statement is true or false
Economics