Use the Following Information to Answer the Next Fifteen Questions

question 121

Multiple Choice

Use the following information to answer the next fifteen questions.
The following graph depicts a market where a tax has been imposed. Pₑ was the equilibrium price before the tax was imposed, and Qₑ was the equilibrium quantity. After the tax, PC is the price that consumers pay, and PS is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers.

-When a tax is imposed on some good,what tends to happen to consumer prices and producer prices?

• A) Consumer prices decrease and producer prices increase.
• B) Consumer prices increase and producer prices decrease.
• C) consumer prices increase and producer prices increase.
• D) Consumer prices decrease and producer prices increase .
• E) Consumer prices And producer prices converge at the same point.

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Definitions:

Risky Decisions

Choices made under conditions of uncertainty that have the potential for significant positive or negative outcomes.

Simple Obstacles

Easily identifiable and straightforward hindrances or challenges that can impede progress or achievement of a goal.

Learning from Experience

The act of gaining knowledge or skill by directly engaging in and reflecting upon specific actions or events.

Educational Background

The formal schooling and training a person has received, including degrees, certifications, and other qualifications.