Refer to the Graphs Shown

question 46

Multiple Choice

Refer to the graphs shown. The arrow that would best illustrate the impact on consumers of reducing sales tax on a good paid by suppliers is:

• A)A.
• B)B.
• C)C.
• D)D.

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Definitions:

Freight Costs

Expenses incurred by a company for transporting goods from one place to another.

FOB Destination

A shipping term indicating that the seller pays for transportation of the goods to the buyer's location and owns the goods in transit.

Freight Costs

Charges incurred for transporting goods between places, typically included as part of the cost of goods sold or inventory.

FOB Destination

A shipping term meaning the seller retains the risk and ownership of goods until they are delivered to the buyer's location.