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:

Mercator Projection

A map projection in which the earth is depicted on a flat surface, distorting sizes especially near the poles, but preserving accurate directions, often used in navigation charts.

Common Connotations

The typical or culturally agreed upon associations and emotional implications that words or phrases carry beyond their literal meanings.

Colors

Visual properties perceived by the eyes and brain, often used to distinguish objects, convey messages, or evoke emotional responses.

Global Rainfall

The distribution and intensity of precipitation received across different regions of the world.