The graph shows the market for cell phones. The government imposes a sales tax on cell phones at $10 a cell phone. The excess burden of the sales tax on cell phones is
A) $20,000.
B) $15,000.
C) $35,000.
D) $7,500.
E) $30,000.
B
You might also like to view...
During the years from 1964 to 1969, inflation increased in the United States
A) when the AD curve shifted up and to the right, even though the SRAS curve remained stable. B) when the SRAS curve shifted up and to the left, even though the AD curve remained stable. C) when the AD curve shifted up and to the right and the SRAS curve shifted up and to the left. D) despite the AD and SRAS curves remaining stable.
Which of the following situations may lead to a decrease in the level of cyclical unemployment?
A. Total value of goods supplied exceeds total value of goods demanded. B. Undesired inventory accumulation. C. A period of significant inflation. D. Desired saving exceeds desired investment.