Refer to Figure 4-18. As a result of the tax, is there a loss in producer surplus?
A) No, because the consumer pays the tax.
B) Yes, because producers are not selling as many units now.
C) No, because the market reaches a new equilibrium
D) No, because producers are able to raise the price to cover their tax burden.
B
Economics
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A shortage of textbooks will cause
a. a decrease in the supply of textbooks b. a decrease in the demand for textbooks c. both an increase in the supply of textbooks and a decrease in the demand for textbooks d. an increase in the price of textbooks, caused by a shift of either the supply curve or the demand curve e. an increase in the price of textbooks
Economics
If the marginal cost is less than average total cost, average total cost will decrease
a. True b. False Indicate whether the statement is true or false
Economics