If a New Tax Is Placed on a Good with a Vertical

question 44

Multiple Choice

If a new tax is placed on a good with a vertical supply curve, the price paid by demanders

• A)does not change.
• B)decreases by the amount of the tax.
• C)decreases by an uncertain amount.
• D)increases by the amount of the tax.
• E)increases by an uncertain amount.

---

Definitions:

Legal Market

A marketplace in which transactions are regulated by laws and monitored by the government to ensure fairness and compliance.

Human Organs

Biological components of the human body that perform specific functions necessary for life.

Market Demand

The total demand for a product or service within a market, reflecting the combined desires and purchasing power of consumers.

Market Supply

The total quantity of a good or service that producers are willing and able to sell at a given price in a given period.