The federal government, in order to fund expanded health care, imposes a lump-sum tax on all business property. Profit-maximizing firms that stay in business will respond by
a. raising prices to pay the tax.
b. cutting output to reduce costs.
c. lowering prices to stimulate demand.
d. doing nothing.
d
Economics
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Increasing the income tax rate ________ the before-tax real wage rate and ________ the after-tax real wage rate
A) lowers; raises B) raises; raises C) does not change; raises D) raises; lowers E) lowers; lowers
Economics
If the demand of a good is inversely related to income, it must be
A) a bad good. B) an inferior good. C) a normal good. D) an everyday product.
Economics