Multiple Choice
If the same fine is imposed on buyers and sellers of an illegal good so that the cost of breaking the law is the same for both, then
A) there is more government revenue collected than with an excise tax on the good.
B) there is no deadweight loss in this market because the extra producer surplus will exactly offset the lost consumer surplus.
C) the supply and demand curves both shift leftward by equal amounts.
D) the equilibrium price of the good definitely increases.
Correct Answer:

Verified
Correct Answer:
Verified
Q88: A sales tax is imposed on the
Q89: When a tax is imposed on sellers
Q90: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the table
Q91: When a tax is imposed on the
Q92: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The market for
Q94: If the elasticities of demand for alcohol,
Q95: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The above table
Q96: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the figure
Q97: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the figure
Q98: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above