Quiz3 - ECO 201 _ Quiz 3 Dr. Antonio Saravia _ _ 1. A tax...

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ECO 201 Quiz 3 Dr. Antonio Saravia ____ 1. A tax placed on the sellers of blueberries a. reduces costs, raises profit and shifts supply to the left (upward). b. increases costs, lowers profit and shifts supply to the right (downward). c. increases costs, lowers profit and shifts supply to the left (upward). d. increases costs, lowers profit and causes a movement along the supply curve. ____ 2. When a tax is placed on the sellers of a product the a. demand for the product falls. b. price of the product falls and quantity demand increases. c. size of the market is reduced. d. price of the product decreases. ____ 3. Price controls are a. established by firms with monopoly power. b. used to make markets more efficient. c. usually enacted when policymakers believe that the market price of a good or service is unfair to buyers or sellers. d. nearly always effective in eliminating inequities. ____ 4. Ray buys a new tractor for $118,000. He receives consumer surplus of $13,000 on his purchase. Ray's willingness to pay is
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This note was uploaded on 04/18/2008 for the course ECO 201 taught by Professor Saravia during the Spring '08 term at American University of Sharjah.

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Quiz3 - ECO 201 _ Quiz 3 Dr. Antonio Saravia _ _ 1. A tax...

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