Suppose There Is Currently a Tax of $50 Per Ticket

question 87

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 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:

Kohler

Wolfgang Köhler, a psychologist and one of the founders of Gestalt psychology, known for his work on insight learning.

Titchener

Edward Titchener was a British psychologist known for developing structuralism, an early school of psychology focused on breaking down mental processes into the most basic components.

Behaviorism

An approach in psychology that emphasizes the importance of external behavior rather than internal processes and posits that behavior can be studied scientifically without recourse to inner mental states.

Psychodynamic Psychology

A branch of psychology that emphasizes the systemic study of the psychological forces that underlie human behaviour, feelings, and emotions and how they might relate to early experience.