Figure 8-11 -Refer to Figure 8-11.Neither a Shift of the Demand Curve

question 104

Multiple Choice

Figure 8-11
-Refer to Figure 8-11.Neither a shift of the demand curve nor a shift of the supply curve is shown on the figure.However,we know that,when the tax is imposed,

• A)the demand curve will shift.
• B)the supply curve will shift.
• C)either the demand curve or the supply curve will shift.
• D)None of the above are correct;the tax causes neither the demand curve nor the supply curve to shift.

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Definitions:

Bureaucracy

A large, impersonal organization composed of many clearly defined positions arranged in a hierarchy. A bureaucracy has a permanent, salaried staff of qualified experts and written goals, rules, and procedures. Staff members always try to find ways of running the bureaucracy more efficiently.

Business

Economic activities that involve providing goods or services with the motive of earning profit.

Salaried Staff

Employees who receive a fixed compensation regularly (usually monthly or biannually) regardless of the number of hours worked.

Bureaucracy

A structured organizational system characterized by fixed hierarchical levels, a focus on procedural correctness, and a division of responsibilities designed to streamline operations and decision-making.