Consider the market for minivans. Suppose the "existing policy" requires that when buying (or she) can register himself (or herself) as the new vehicle owner. new minivan, the buyer is liable to pay a "transfer tax" of $1,000 before he This transfer tax, however, has long been criticized as unfair to buyers. So the government just decided a "new policy" - that starting from tomorrow, both buyer and seller should be liable to the transfer tax, and each party should pay $500 respectively to the government. When compared to the existing policy, the new policy would result in: a. an upward shift of the supply curve by $500. O b. a downward shift of the supply curve by $500. C. no shift of the supply curve. When compared to the existing policy, the new policy would result in: a. an increase in the market price of minivans. b. a decrease in the market price of minivans. O c. an uncertain change to the market price of minivans. d. no change to the market price of minivans. When compared to the existing policy, the new policy would result in: O a. an increase in the total tax revenue to government. b. a decrease in the total tax revenue to government. C. an uncertain change to the total tax revenue to government. d. no change to the total tax revenue to government.
Consider the market for minivans. Suppose the "existing policy" requires that when buying (or she) can register himself (or herself) as the new vehicle owner. new minivan, the buyer is liable to pay a "transfer tax" of $1,000 before he This transfer tax, however, has long been criticized as unfair to buyers. So the government just decided a "new policy" - that starting from tomorrow, both buyer and seller should be liable to the transfer tax, and each party should pay $500 respectively to the government. When compared to the existing policy, the new policy would result in: a. an upward shift of the supply curve by $500. O b. a downward shift of the supply curve by $500. C. no shift of the supply curve. When compared to the existing policy, the new policy would result in: a. an increase in the market price of minivans. b. a decrease in the market price of minivans. O c. an uncertain change to the market price of minivans. d. no change to the market price of minivans. When compared to the existing policy, the new policy would result in: O a. an increase in the total tax revenue to government. b. a decrease in the total tax revenue to government. C. an uncertain change to the total tax revenue to government. d. no change to the total tax revenue to government.
Chapter1: Making Economics Decisions
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Transcribed Image Text:Consider the market for minivans. Suppose the "existing policy" requires that when buying
(or she) can register himself (or herself) as the new vehicle owner.
new minivan, the buyer is liable to pay a "transfer tax" of $1,000 before he
This transfer tax, however, has long been criticized as unfair to buyers. So the government just decided a "new policy" - that starting from tomorrow, both buyer and
seller should be liable to the transfer tax, and each party should pay $500 respectively to the government.
When compared to the existing policy, the new policy would result in:
a. an upward shift of the supply curve by $500.
O b. a downward shift of the supply curve by $500.
c. no shift of the supply curve.
When compared to the existing policy, the new policy would result in:
a. an increase in the market price of minivans.
b. a decrease in the market price of minivans.
O c. an uncertain change to the market price of minivans.
d. no change to the market price of minivans.
When compared to the existing policy, the new policy would result in:
O a. an increase in the total tax revenue to government.
b. a decrease in the total tax revenue to government.
C. an uncertain change to the total tax revenue to government.
d. no change to the total tax revenue to government.
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