Assuming a Normal Upward-Sloping Supply Curve and Downward-Sloping Demand Curve,if

question 111

Multiple Choice

Assuming a normal upward-sloping supply curve and downward-sloping demand curve,if the government imposes a $5 excise tax on leather shoes and collects the tax from the suppliers,the price of leather shoes will:

• A)increase by $5.
• B)increase by more than $5.
• C)increase by less than $5.
• D)increase,but we cannot determine by how much.

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Definitions:

Imports

Goods or services brought into one country from another for the purpose of trade or sale.

Cournot Duopolists

A market structure in which two companies assume the other's output to be constant when determining their optimal production levels.

Total Costs

The total of all expenses involved in creating goods or services, encompassing both constant and fluctuating costs.

Daily Profit

The net financial gain or loss a business experiences on a daily basis.