Does a tax on buyers affect the demand curve?
A. Yes, it shifts down by the amount of the tax.
B. Yes, it shifts to the left by the amount of the tax.
C. Yes, it shifts up by the amount of the tax.
D. No, there is change in the quantity demanded, but the demand curve does not move.
A. Yes, it shifts down by the amount of the tax.
You might also like to view...
Refer to Table 4-7. If a minimum wage of $12.50 an hour is mandated, what is the quantity of labor demanded?
A) 80,000 B) 550,000 C) 630,000 D) 1,180,000
If the income elasticity of demand for a good is 0.5, then
a. it is a normal good, and its demand curve will shift to the left if buyers' incomes increase b. it is a normal good, and its demand curve will shift to the right if buyers' incomes increase c. it is an inferior good, and its demand curve will shift to the right if buyers' incomes increase d. it is an inferior good, and its demand curve will shift to the left if buyers' incomes increase e. there is insufficient information to determine whether the good is normal or inferior