The Statement That 'Increases in the Tax on Petrol Increase

question 90

Multiple Choice

The statement that 'increases in the tax on petrol increase the price of petrol' is an example of which of the following?

• A) Marginal statement.
• B) Rational-decision statement.
• C) Macroeconomic statement.
• D) Positive statement.
• E) Normative statement.

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Definitions:

Shifts

Refers to changes in the position of demand or supply curves in economic models, often due to changes in external factors such as technology, preferences, or policy.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at various prices.

Price of Substitutes

The cost of alternative goods or services that consumers can purchase instead of the original item, influencing consumer choices and demand.

Supply Curve

represents the relationship between the price of a good or service and the quantity of it that suppliers are willing to produce and sell at that price.