149) Suppose the government introduces a specific tax of Rs.5 a unit on a product which has sloping supply and demand curves. Which of the following statements about the resulting curve S+tax is true?
Answer is:
The gap between S+tax and S will be Rs.5 at each quantity
Related Micro Economics MCQ (GK Set-1) with Answers
Answer is:
At the point on S below the point where S+tax intersects D
Answer is:
1-F,2-T,3-F
Answer is: