Taxes and Subsidies: End of Chapter Problem Let's see if we can formulate any real laws about the economics of taxation. Which of the following must be true? More than one may be true. If there is a tax: Must occur 4 a. The equilibrium quantity must fall, and the price that buyers pay must rise. b. The equilibrium quantity must rise, and the price that sellers pay must rise. Will not occur c. The equilibrium quantity must fall, and the price that sellers receive must fall. Answer Bank d. The equilibrium quantity must rise, and the price that buyers receive must fall.

Taxes and Subsidies: End of Chapter Problem Let's see if we can formulate any real laws about the economics of taxation. Which of the following must be true? More than one may be true. If there is a tax: Must occur 4 a. The equilibrium quantity must fall, and the price that buyers pay must rise. b. The equilibrium quantity must rise, and the price that sellers pay must rise. Will not occur c. The equilibrium quantity must fall, and the price that sellers receive must fall. Answer Bank d. The equilibrium quantity must rise, and the price that buyers receive must fall.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Taxes and Subsidies: End of Chapter Problem
Let's see if we can formulate any real laws about the economics of taxation. Which of the following must be true? More
than one may be true.
If there is a tax:
Must occur
a. The equilibrium quantity must fall, and the price that buyers pay
must rise.
b. The equilibrium quantity must rise, and the price that sellers pay
must rise.
Will not occur
c. The equilibrium quantity must fall, and the price that sellers receive
must fall.
Answer Bank
d. The equilibrium quantity must rise, and the price that buyers
receive must fall.

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