If a tax is imposed per unit of a good sold, ________.
A) the supply curve for the good shifts to the right
B) the supply curve for the good shifts to the left
C) the demand curve for the good shifts to the right
D) the demand curve for the good shifts to the left
Question 2
A fruit retailer buys 50 pounds of apples from the wholesale market every day. The retailer has observed that 20 of the apples bought each time are not of good quality.
Because it is not possible for the retailer to check each apple before buying, how much should he pay for each pound if he values good apples for 1.40 per pound while he has a value of zero for bad quality apples? A) 1.12 per pound
B) 1.20 per pound
C) 1.40 per pound
D) 2 per pound
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