A sales tax imposed on sellers of a good
A) decreases the demand and shifts the demand curve rightward.
B) decreases the supply and shifts the supply curve leftward.
C) decreases both the demand and the supply and shifts both the demand and supply curves leftward.
D) decreases the supply and shifts the supply curve rightward.
E) has no effect on either the demand or the supply.
B
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In the presence of asymmetric information, a fixed-fee contract
A) achieves production efficiency. B) can lead to opportunistic behavior on the part of the agent. C) is impossible to write. D) will result in the principal earning all of the profit.
Juanita has just opened a new business selling pet supplies through the Internet
A) Juanita is an entrepreneur. B) Juanita is not providing economic goods since people purchase the goods. C) Juanita is not providing economic goods since pet supplies are not being sold in a store. D) Juanita is not an entrepreneur since there are other businesses that sell pet supplies.