Refer to Figure 15-11. Suppose the local government imposes a $2.50 per month tax on cable companies. What happens to the price charged by the cable company following the imposition of this tax?
A) The price rises from PM but it increases by an amount greater than $2.50 to reflect the monopoly's markup.
B) The price remains at PM.
C) The price rises from PM but it increases by an amount less than $2.50.
D) The price rises from PM to (PM + $2.50).
B
Economics
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Congestion taxes tend to cause an increase in traffic volume during rush hours
Indicate whether the statement is true or false
Economics
Refer to Figure 8A.2. If the economy were originally saving at the rate s1 but changed to the rate s2
A) depreciation will not catch up to total saving. B) capital deepening will continue past K2. C) the economy stops growing at e1. D) saving exceeds depreciation at K1.
Economics