Multiple Choice
The demand curve for rutabagas is a straight line with slope 23 and the supply curve is a straight line with slope 2.Suppose that a new tax of $3 per sack of rutabagas is introduced.
A) The total number of rutabagas purchased increases.
B) The price paid by demanders rises by the same amount as the price received by suppliers falls.
C) The price received by suppliers falls by more than the price paid by demanders rises.
D) The price paid by demanders rises by more than the price received by suppliers falls.
E) The price paid by demanders rises by more than $3.
Correct Answer:

Verified
Correct Answer:
Verified
Q17: The demand function for fresh strawberries is
Q18: The inverse demand function for video games
Q19: The inverse demand function for lemons is
Q20: The price elasticity of demand for a
Q21: The market for tennis shoes has a
Q23: In a crowded city far away, the
Q24: The price elasticity of demand for a
Q25: If the supply curve is vertical, then
Q26: In a crowded city far away, the
Q27: If the supply is perfectly elastic, then