Suppose There Is Currently a Tax of $50 Per Ticket

question 145

Multiple Choice

Suppose there is currently a tax of $50 per ticket on airline tickets.Buyers 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:

ECT

Electroconvulsive Therapy, a psychiatric treatment in which seizures are electrically induced in patients to provide relief from severe mental disorders.

Behavior Therapy

A type of psychotherapy that focuses on changing unhealthy or destructive behaviors through reinforcement strategies and conditioning.

Psychoanalysis

A therapeutic technique and theory of psychology developed by Sigmund Freud, focusing on unconscious processes and resolving internal conflicts.

Sigmund Freud

A neurologist from Austria who initiated the field of psychoanalysis, which employs conversation between a psychoanalyst and a patient as a therapy for mental disorders.