Which of the Following Statements Represents a Correct and Sequentially

question 140

Multiple Choice

Which of the following statements represents a correct and sequentially accurate economic explanation?

• A)A tax is placed on the production of good X, the supply curve of good X shifts to the left, equilibrium price rises, equilibrium quantity falls, and buyers pay 100 percent of the tax.
• B)A tax is placed on the production of good X, the supply curve of good X shifts to the left, equilibrium price rises, equilibrium quantity stays constant, and buyers pay 100 percent of the tax.
• C)A tax is placed on the production of good X, the supply curve of good X shifts to the left, equilibrium price does not change, equilibrium quantity rises, and sellers pay 50 percent of the tax.
• D)A tax is placed on the production of good X, the supply curve of good X shifts to the right, equilibrium price falls, equilibrium quantity falls, and sellers pay 100 percent of the tax.

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Definitions:

FOB Destination

In this shipping term, the seller retains the risk of loss until the goods reach the buyer's location.

FOB Shipping Point

This refers to a shipping term where the buyer assumes responsibility for the goods the moment they leave the seller’s premises.

Accounts Payable

A liability account that records amounts the company owes to suppliers or creditors for purchases or services received on credit.

Physical Inventory Count

A physical inventory count is the process of manually counting all merchandise or stock in a business to verify records and manage inventory levels.