A $1 per unit tax levied on consumers of a good is equivalent to? A) $1 per unit

ID: 1094049 • Letter: A

Question

A $1 per unit tax levied on consumers of a good is equivalent to?

A) $1 per unit tax levied on producers of the good.

B) $1 per unit subsidy paid to producers of the good.

C) price floor that raises the goods price by $1 per unit.

D) price ceiling that raises the goods price by $1 per unit.

Which of the following would increase quantity supplied, decrease quantity demanded, and increase the price that consumers pay?

A)the imposition of a binding price floor

B)the removal of a binding price floor

C)the passage of a tax levied on producers

D)the repeal of a tax levied on producers

Which of the following would increase quantity supplied, increase quantity demanded, and decrease the price that consumers pay?

A)the imposition of a binding price floor

B)the removal of a binding price floor

C)the passage of a tax levied on producers

D)the repeal of a tax levied on producers

When a good is taxed, the burden of the tax falls mainly on consumers if

A)the tax is levied on consumers.

B)the tax is levied on producers.

C)supply is inelastic, and demand is elastic.

D)supply is elastic, and demand is inelastic.

1) $1 per unit tax levied on consumers of a good is equivalent to $1 per unit tax levied on producers of the good.

2) The imposition of a binding price floor would increase quantity supplied, decrease quantity demanded, and increase the price that consumers pay.

3) The repeal of a tax levied on producers would increase quantity supplied, increase quantity demanded, and decrease the price that consumers pay .

4) When a good is taxed, the burden of the tax falls mainly on consumers if supply is elastic, and demand is inelastic.

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