8. The government of OZLand announces that on 1 July 2008 it will introduce a new tax on digital TVs. The announcement is made on 1 January 2008. It is known that the effect of the tax will be to increase the price of digital TVs after 1 July 2008. Prior to 1 July 2008 it would be expected that the effect of buyers knowing that the tax will be introduced would be to: a) Increase the equilibrium price of digital TVs b) Decrease demand for digital TVs c) Decrease the equilibrium quantity traded of digital TVs d) Be zero since the tax has not been introduced yet e) Both (a) and (c)
8. The government of OZLand announces that on 1 July 2008 it will introduce a new tax on digital TVs. The announcement is made on 1 January 2008. It is known that the effect of the tax will be to increase the price of digital TVs after 1 July 2008. Prior to 1 July 2008 it would be expected that the effect of buyers knowing that the tax will be introduced would be to: a) Increase the equilibrium price of digital TVs b) Decrease demand for digital TVs c) Decrease the equilibrium quantity traded of digital TVs d) Be zero since the tax has not been introduced yet e) Both (a) and (c)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...
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