Refer to Scenario 19.4 below to answer the question(s) that follow. SCENARIO 19.4: Suppose demand for widgets is given by the equation P = 10 - 0.25Q. Originally, the price of the good is $5 per unit. When a tax of $1 per unit is imposed, the price of the good rises to $6 per unit.Refer to Scenario 19.4. What is the total burden of the tax?
A. $2
B. $18
C. $32
D. $50
Answer: B
Economics
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A) zero. B) equal to the opportunity cost of those activities. C) less than the opportunity cost of those activities. D) greater than the opportunity cost of those activities.
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If a monopolist raises its price
A. the quantity demanded remains the same. B. it raises the barriers to entry. C. the quantity demanded decreases. D. the quantity demanded increases.
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