Supply and demand curves

Supply and demand curves - excise tax

Reference no: EM1374557

The government levies an excise tax of five cents per unit sold on sellers in a competitive industry. Supply and demand curves have some elasticity with respect to value. This tax means that the:
A) supply curve shifts to the left by 5 cents, but (unless demand is perfectly elastic) price will not rise.
B) supply curve shifts to the left by less than 5 cents, but (unless demand is highly elastic) price will rise by the full five cents.
C) supply curve shifts to the left by less than 5 cents, but (unless demand is highly inelastic) price will rise by more than 5 cents.
D) supply curve shifts to the left by 5 cents, but (unless supply is perfectly elastic) any price rise will be less than 5 cents.
E) demand curve shifts to the right by 5 cents, and price will rise by 5 cents.

Reference no: EM1374557

Questions Cloud

Illustrate what is janet management style is based on : Finally, she gave account to Paula, a very creative, efficient writer who has had high sales results with her last 3 clients' products. Illustrate what is Janet's management style is based on.

Fixed factor in the short run : In the economic theory of the company, we generally discuss only 2-factors, labor and capital, and in short run labor is variable factor and capital is the fixed factor of production.

Define types of information communication in organization : Define types of information communication within organizations. Can you help me better understand explain how to explain this in a short essay? re is no page or word limit required.

What is annual cost of ordering and carrying cloth : A service garage uses 120 boxes of cleaning cloths per year. Boxes cost $6 each. Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on annual basis. What is annual cost of ordering and carrying cloth.

Supply and demand curves - excise tax : The government levies an excise tax of five cents per unit sold on sellers in a competitive industry. Supply and demand curves have some elasticity with respect to value.

Explain how many cases should doc order each time he places : His approximate d cost to carry 1 case of whiskey is $52 dollars per case per year. He approximates that it costs $21 to place a whiskey order. Explain how many cases should doc order each time he places an order.

Who needs to decrease demand : Explain when demand exceeds supply you have to Find out a way to decrease demand or increase supply. Who needs to decrease demand.

Do you think small businesses to compete in a global market : Do you think small businesses have any opportunity to compete in a global market. Explain how can they improve their success.

Total profits across the market : In a short run condition in which quantity demanded equals quantity supplied in a competitive industry, with value greater than the average cost of the typical company,

User Account

All Pages