When a Tax Is Levied on Buyers of a Good

question 98

Multiple Choice

When a tax is levied on buyers of a good,

• A)government collects too little revenue to justify the tax if the equilibrium quantity of the good decreases as a result of the tax.
• B)there is an increase in the quantity of the good supplied.
• C)a wedge is placed between the price buyers pay and the price sellers effectively receive.
• D)the effective price to buyers decreases because the demand curve shifts leftward.

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Definitions:

Frequency Distribution

A summary of how often different values occur within a dataset, often represented in a table or graph.

Students

Individuals engaged in learning at educational institutions.

Frequency Polygon

A frequency polygon is a graphical representation of the distribution of a dataset. It uses a series of connected dots or lines at the midpoints of each interval to show frequencies.

Histogram

A histogram is a graphical representation of the distribution of numerical data, where the data is divided into intervals (bins), and the frequency of data within each bin is depicted by the height of the bar.