Economics Tax Impact Quiz
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Questions and Answers

What is the equilibrium price before the tax is imposed?

  • $20
  • $10
  • $15 (correct)
  • $5

    • How does a 1.5% tax per unit affect the equilibrium quantity?

  • It has no effect on quantity.
  • It increases the quantity supplied.
  • It decreases the quantity demanded. (correct)
  • It increases the quantity demanded.

    • What is the formula used to calculate tax revenue received by the government?

  • Equilibrium Price × Tax Rate
  • Tax Rate × Demand Price
  • Tax Rate × Supply Price
  • Tax Rate × Equilibrium Quantity (correct)

    • What effect does the tax have on the equilibrium price after it is imposed?

    <p>Increases price.</p> Signup and view all the answers

    What graphical feature indicates equilibrium in a demand and supply graph?

    <p>The intersection of the demand and supply curves.</p> Signup and view all the answers

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