Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: a. The price of input A decreases. b. An excise tax of $3 is imposed on good X. c. An ad valorem tax of 7 percent is imposed on good X. d. A technological change reduces the cost of producing additional units of good X.

Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: a. The price of input A decreases. b. An excise tax of $3 is imposed on good X. c. An ad valorem tax of 7 percent is imposed on good X. d. A technological change reduces the cost of producing additional units of good X.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section: Chapter Questions

Problem 7SQP

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Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations:a. The price of input A increases. It will increase. It will not change. It will decrease. b. An excise tax of $4 is imposed on good X. It will not change. It will decrease. It will increase. c. An ad valorem tax of 5 percent is imposed on good X. It will decrease. It will not change. It will increase. d. A technological change reduces the cost of producing additional units of good X. It will increase. It will decrease. It will not change.
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations:a. The price of input A decreases. It will not change. It will increase. It will decrease. b. An excise tax of $3 is imposed on good X. It will not change. It will increase. It will decrease. c. An ad valorem tax of 7 percent is imposed on good X. It will increase. It will not change. It will decrease. d. A technological change reduces the cost of producing additional units of good X. It will increase. It will decrease. It will not change.
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