Suppose There Is Currently a Tax of $50 Per Ticket

question 94

Multiple Choice

Suppose there is currently a tax of $50 per ticket on airline tickets.Buyers of airline tickets are required to pay the tax to the government.If the tax is reduced from $50 per ticket to $20 per ticket,then the

• A)demand curve will shift upward by $30,and the price paid by buyers will decrease by less than $30.
• B)demand curve will shift upward by $30,and the price paid by buyers will decrease by $30.
• C)supply curve will shift downward by $30,and the effective price received by sellers will increase by less than $30.
• D)supply curve will shift downward by $30,and the effective price received by sellers will increase by $30.

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