Which of the Following Is a Correct Statement About Markets

question 330

Multiple Choice

Which of the following is a correct statement about markets for prohibited goods?

• A) Penalizing sellers of an illegal good decreases supply and penalizing buyers decreases demand.
• B) Penalizing either buyers or sellers of an illegal good decreases the quantity bought.
• C) Taxing a good at a sufficiently high rate can achieve the same consumption level as prohibition.
• D) All of the above are correct statements.

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Definitions:

Donation

Voluntary giving of resources such as money, goods, or time to help individuals, organizations, or communities.

Total Purchase Price

The complete cost of acquiring an asset, including the price of the asset plus any additional fees or expenses involved in the purchase.

Square Yards

A unit of area measurement equal to a square measuring one yard on each side, used in the United States for land and flooring measurements.

Including Tax

Means that the price mentioned for goods or services includes any taxes that are applicable.