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:

Internal Factor

A factor that originates within an organization, individual, or system, affecting its function or behavior.

Perceptual Selection

The process of filtering information through sensory inputs, choosing what to focus on based on relevance.

Feng Shui

An ancient Chinese practice that involves arranging the pieces in living spaces to create balance with the natural world.

Red Accents

The use of red highlights or details in a visual design to attract attention or evoke emotions.