## Suppose there is currently a tax of \$50 per ticket on airline tickets. Sellers of airline tickets are required to pay the tax to the governm

Question

Suppose there is currently a tax of \$50 per ticket on airline tickets. Sellers of airline tickets are required to pay the tax to the government. If the tax is reduced from \$50 per ticket to \$30 per ticket, then thea. demand curve will shift upward by \$20, and the price paid by buyers will decrease by less than \$20.b. demand curve will shift upward by \$20, and the price paid by buyers will decrease by \$20.c. supply curve will shift downward by \$20, and the effective price received by sellers will increase by less than \$20.d. supply curve will shift downward by \$20, and the effective price received by sellers will increase by \$20.

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3 months 2021-10-17T04:10:05+00:00 1 Answer 0 views 0

## Answers ( )

1. Answer:

the demand curve will shift upward by \$20 and the price paid by buyers will decrease by \$20.

Step-by-step explanation:

the reduction in the fixed amount of tax from \$50 t0 \$30 will bring about reduction  of \$20 in the price of ticket. the reduction in the price of the ticket, other factors held constant, will brings about change in the demand curve.