When the Government Places a Tax on a Good and All

question 119

Multiple Choice

When the government places a tax on a good and all else is held constant,which of the following would most likely happen?

• A) The overall consumption of the good decreases,assuming the good does not have a vertical demand curve.
• B) The price the buyer pays for the good decreases,assuming the good does not have a horizontal demand curve.
• C) The supply curve shifts to the right.
• D) The government receives no tax revenue if the tax is more than 20 percent.
• E) The price and quantity adjust back to the competitive market equilibrium point.

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Definitions:

Gestalt Psychologists

Psychologists who emphasize human mind and behavior as wholes rather than as separate components, focusing on patterns and contexts in perception.

Sensory Information

Data that is received and processed by the sensory organs, such as the eyes, ears, skin, nose, and tongue, representing the external environment.

Meaningful Forms

Structures or patterns recognized as significant or purposeful within a specific context, contributing to understanding or appreciation.

Color Processing

The ability of the brain to perceive and interpret varying wavelengths of light as different colors.