When a tax is placed on buyers:
A. the resulting price paid by consumers is the same as if the tax were placed on sellers.
B. the resulting price received by sellers is the same as if the tax were placed on sellers.
C. the equilibrium quantity will unequivocally decrease.
D. All of these are true.
D. All of these are true.
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Each of the following would cause an increase in the supply of baseballs EXCEPT
A) an improvement in technology. B) a decrease in the cost of labor used to produce baseballs. C) an expectation that the price of baseballs will rise in the future. D) an increase in the number of baseball producers.
As a general rule, when an income tax is added to the basic macroeconomic model, what happens to the consumption schedule?
a. It will shift downward. b. It will shift upward. c. It will become flatter. d. It will become steeper.