Suppose There Is Currently a Tax of $50 Per Ticket

question 147

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 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:

STIs

Sexually Transmitted Infections are infections that are primarily spread through sexual contact, including bacteria, viruses, and parasites.

Permanent Infertility

An irreversible condition where an individual or couple is physically unable to conceive a child naturally.

Birth Control Patch

A transdermal reversible method of birth control that releases synthetic estrogen and progestin to protect against pregnancy for 1 month.

Celibacy

Not engaging in any kind of sexual activity.