Author Question: In the above figure, the imposition of a 0.25 sales tax on sellers will A) raise the market price ... (Read 28 times)

bio_gurl · **on:** Jun 29, 2018

In the above figure, the imposition of a 0.25 sales tax on sellers will

A) raise the market price paid by buyers of hotdogs by 0.25.
B) lower the market price paid by buyers of hotdogs by 0.25.
C) raise the market price paid by buyers of hotdogs by 0.125.
D) have no effect on the market price of hot dogs.

Question 2

The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point u, the monopoly's

A) total revenue will rise.
B) total revenue will fall.
C) total revenue will remain the same.
D) marginal revenue will increase.