Suppose Sellers of Liquor Are Required to Send $5

question 180

Multiple Choice

Suppose sellers of liquor are required to send $5.00 to the government for every bottle of liquor they sell.Further,suppose this tax causes the price paid by buyers of liquor to rise by $3.00 per bottle.Which of the following statements is correct?

• A)This tax causes the supply curve for liquor to shift upward by $5.00 at each quantity of liquor.
• B)The effective price received by sellers is $5.00 per bottle less than it was before the tax.
• C)Forty percent of the burden of the tax falls on buyers.
• D)All of the above are correct.

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Definitions:

Transgenic Organisms

Organisms whose genomes have been artificially changed by the introduction of a gene from a different species, using techniques of genetic engineering.

Genetically Engineered

Organisms that have had their genetic material altered in a way that does not occur naturally through mating and/or natural recombination.

E. Coli

Escherichia coli, a commonly occurring bacterium in the intestines of warm-blooded organisms, some strains of which can cause food poisoning.

Dideoxynucleotides

Modified nucleotides used in DNA sequencing methods to terminate DNA strand elongation due to the absence of a 3' hydroxyl group.