When a Tax Is Imposed on Some Good,what Tends to Happen

question 116

Multiple Choice

When a tax is imposed on some good,what tends to happen to consumer prices and producer prices?

• A) Consumer prices decrease and producer prices increase.
• B) Consumer prices increase and producer prices decrease.
• C) Consumer prices increase and producer prices increase.
• D) Consumer prices decrease and producer prices decrease.
• E) Consumer prices and producer prices converge at the same point.

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Definitions:

Natural Rain

Precipitation in the form of water droplets that falls from clouds in the Earth's atmosphere without any human intervention.

pH

A scale that measures the acidity or alkalinity of a solution, where 7 is neutral, values less than 7 are acidic, and values greater than 7 are alkaline.

Irritated Respiratory Tract

A condition where the airways are inflamed due to pollution, allergens, or infection, causing discomfort or trouble breathing.

Carbon Dioxide

This is a gas that cannot be seen or smelled, emerging from the combustion of carbon and various organic substances, along with being a part of the respiration process. Naturally occurring in our atmosphere, it is critical for the photosynthesis process in plants.