If a good has a tax levied on it, sellers respond to the price that excludes the tax and not the price with the tax because
A) the tax is handed over to the state directly by buyers.
B) sellers do not get to keep the tax revenue.
C) the demand for the good has decreased.
D) the quantity supplied of the good increases.
E) demanders pay none of the tax.
B
Economics
You might also like to view...
If the quantity of sunglasses supplied is represented by the supply equation QS = -60 + 4P, then to solve for the price of sunglasses, the equation would be rewritten as
A) P = 15QS + 240. B) P = 0.25QS + 15. C) P = QS - 7.5. D) P = 12 - 0.4QS.
Economics
In the United States from 1981 to 2015, deaths from diabetes increased largely due to the effects of
A) foreign-produced insulin. B) stress in the workplace. C) a larger immigrant population. D) increasing obesity.
Economics