If the Government Imposes a Tax on Buyers as a Way

question 9

Multiple Choice

If the government imposes a tax on buyers as a way of reducing pollution,which curve is affected and how?

• A)The supply curve shifts to the right.
• B)The supply curve shifts to the left.
• C)The demand curve shifts to the right.
• D)The demand curve shifts to the left.
• E)Neither the demand nor the supply curve is affected but the price will increase.

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Definitions:

Reduce Health Care Costs

Initiatives or policies aimed at lowering the expenses associated with medical care.

Elective Surgical Procedure

A type of surgery that is planned in advance, not arising from an emergency situation, and is subject to the patient's choice.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to a stable market condition.

Federal Tax Policy

The set of laws and regulations established by the federal government to determine the amount of tax to be levied on individuals, corporations, and other entities.