Suppose There Is Currently a Tax of $50 Per Ticket

question 43

Multiple Choice

Suppose there is currently a tax of $50 per ticket on airline tickets.Sellers of airline tickets are required to pay the tax to the government.If the tax is reduced from $50 per ticket to $30 per ticket,then the

• A)demand curve will shift upward by $20,and the effective price received by sellers will increase by $20.
• B)demand curve will shift upward by $20,and the effective price received by sellers will increase by less than $20.
• C)supply curve will shift downward by $20,and the price paid by buyers will decrease by $20.
• D)supply curve will shift downward by $20,and the price paid by buyers will decrease by less than $20.

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Definitions:

International Workers of the World

Also known as the IWW or Wobblies, an international labor union founded in 1905 aiming for worker solidarity and the abolition of the wage system.

American Federation of Labor

A national federation of labor unions in the United States, founded in 1886, focused on advocating for the rights of skilled laborers.

American Protective League

A civilian organization during World War I that worked with federal law enforcement agencies to identify and counteract espionage and subversion.

Espionage and Sedition Acts

A set of laws enacted by the U.S. during World War I, making it illegal to interfere with military operations, support enemy nations, or hinder the war effort, often criticized for restricting free speech.