Author Question: A unit tax placed on demanders causes the supply curve to shift downward, shifting part of the tax ... (Read 56 times)

Coya19@aol.com

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A unit tax placed on demanders causes the supply curve to shift downward, shifting part of the tax burden to supplier in the form of lower prices and quantity.
 
  a. True b. False

Question 2

Cigarette companies favored a ban on cigarette advertising.
 
  What will be an ideal response?



macagn

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Answer to Question 1

b

Answer to Question 2

True. The cigarette industry is an oligopoly and it is likely that most of the advertising was aimed at stealing customers from rivals. Therefore, joint profits are greater without advertising.



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