13 President Herbert Hoover was paid a salary of $75,000. Government statistics show aconsumer price index of 15.2 for 1931 and 195 for 2005. President Hoover's 1931salary was equivalent to a 2005 salary of aboutO $1,254,262.O $1,455,995.$1,125,008$962,171 With a tax on demand (if demand is downward-sloping as it usually is) , the price thatbuyers pay with the taxand the price that sellers receive with thetaxalways increases; always increasesalways increases; stays the samealways increases; always decreasesOstays the same; always increases

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13 President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 195 for 2005. President Hoover's 1931 salary was equivalent to a 2005 salary of about O $1,254,262. O $1,455,995. O $1,125,008 O $962,171

13 President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 195 for 2005. President Hoover's 1931 salary was equivalent to a 2005 salary of about O $1,254,262. O $1,455,995. O $1,125,008 O $962,171

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter17: Taxation And Resource Allocation

Section: Chapter Questions

Problem 4TY

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Question

13 President Herbert Hoover was paid a salary of $75,000. Government statistics show a
consumer price index of 15.2 for 1931 and 195 for 2005. President Hoover's 1931
salary was equivalent to a 2005 salary of about
O $1,254,262.
O $1,455,995.
$1,125,008
$962,171

With a tax on demand (if demand is downward-sloping as it usually is) , the price that
buyers pay with the tax
and the price that sellers receive with the
tax
always increases; always increases
always increases; stays the same
always increases; always decreases
Ostays the same; always increases

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