Suppose There Is Currently a Tax of $50 Per Ticket

question 94

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 $20 per ticket,then the

• A)demand curve will shift upward by $30,and the price paid by buyers will decrease by less than $30.
• B)demand curve will shift upward by $30,and the price paid by buyers will decrease by $30.
• C)supply curve will shift downward by $30,and the effective price received by sellers will increase by less than $30.
• D)supply curve will shift downward by $30,and the effective price received by sellers will increase by $30.

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Definitions:

Organizational Resources

The assets, capabilities, processes, information, and knowledge that an organization controls and can use to accomplish its goals and objectives.

Business Strategies

Comprehensive plans and actions that guide businesses in achieving their goals, responding to competitive environments, and fulfilling market demands.

Corporate Strategies

The comprehensive approaches that businesses adopt to achieve their long-term objectives and secure a competitive advantage.

Single-product Enterprises

Businesses that focus on the production, promotion, and sale of a single type of product.