Which of the Following Will Tend to Occur If Price

question 56

Multiple Choice

Which of the following will tend to occur if price floors are imposed on a product?

• A)persistent surpluses 
• B)problems of disposal of goods 
• C)disguised discounts developing to eliminate excess production 
• D)overinvestment in the industry 
• E)All of the above are correct.

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or activities, often included in the price of items like gasoline, alcohol, and tobacco.

Tax Wedge

The difference between the amount a buyer pays and the amount a seller receives for a good or service due to taxation.

Sellers

Individuals or entities that offer goods or services for sale in the market.

Excise Tax

A type of tax levied on specific goods, services, or activities, often aimed at discouraging undesirable behaviors or generating revenue.