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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Audrey 1 month 2021-10-17T04:10:05+00:00 1 Answer 0 views 0

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    2021-10-17T04:11:38+00:00

    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.

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