Exam 4: A: Supply and Demand: Applications and Extensions

Use the figure below to answer the following question(s). Figure 4-7 -Refer to Figure 4-7. Which of the following is true for the tax illustrated?

If Heather's tax liability increases from $10,000 to $15,000 when her income increases from $30,000 to $40,000, her marginal tax rate is

Use the table below to choose the correct answer. For the income range illustrated, the tax shown here is

Use the figure below illustrating the impact of an excise tax to answer the following question(s). Figure 4-6 -The deadweight loss of the tax illustrated in Figure 4-6 is given by the area

The marginal tax rate is defined as

Other things constant, an increase in the demand for motorcycles will

The benefit of a subsidy will go primarily to sellers when the

The tax rate that maximizes the revenue generated by a tax

Data from the effects of the substantial tax rate reductions in the 1980s

Compared to legal markets, black markets have

If a $5,000 tax is placed legally (statutorily) on the sellers of new automobiles and as a result the price of automobiles to consumers rises by $4,000, then the actual burden of the tax

A tax on the buyers of coffee will

Under rent control, tenants can expect

Use the figure below to answer the following question(s). Figure 4-8 -Refer to Figure 4-8. The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S₁ to S₂. Imposing the tax increases the equilibrium price of soft coal from

When a tax is imposed on a good,

Use the table below to choose the correct answer. For the income range illustrated, the tax shown here is

Studies indicate the demand for cigarettes is highly inelastic, while the demand for green peas tends to be elastic. Other things constant, how will this affect the incidence of an excise tax on these products?

Exempting teenagers from the minimum wage would probably cause

If Heather's tax liability increases from $10,000 to $13,500 when her income increases from $30,000 to $40,000, her marginal tax rate is

Taxes create deadweight losses because they