When a Tax Is Placed on the Buyers of a Product,buyers

question 20

Multiple Choice

When a tax is placed on the buyers of a product,buyers pay

• A)more and sellers receive more than they did before the tax.
• B)more and sellers receive less than they did before the tax.
• C)less and sellers receive more than they did before the tax.
• D)less and sellers receive less than they did before the tax.

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Definitions:

Value Chain Activities

The range of activities that a business performs to deliver a valuable product or service to its customers, including both primary and support activities.

Available Technology

Refers to the current technologies that are accessible for use in various industries to enhance operations, products, or services.

High Fixed Costs

A financial situation where a company has a high proportion of fixed expenses, which do not vary with the level of production or sales.

High Marginal Costs

Situations where the cost to produce one additional unit is significantly high, often affecting pricing and profitability.