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.

---

Definitions:

Per Capita Real GDP

An economic metric that measures the economic output of a country adjusted for inflation and divided by the total population.

Muffler

A device for reducing noise emitted by the exhaust of an internal combustion engine.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources.

Economic Well-Being

The overall state of economic health and prosperity experienced by individuals or a community, often measured by factors like income, employment, and access to goods and services.