Suppose There Is Currently a Tax of $50 Per Ticket

question 87

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

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Definitions:

Product-Development

The creation process that takes a product from concept to market availability.

R&D Spending

Expenditures dedicated to research and development activities, aimed at developing new products, services, or processes or improving existing ones.

Revenue Growth

The increase in a company's sales and income over time.

Collective Bargaining

The process by which workers, through their unions, negotiate contracts with their employers to determine their terms of employment.