How Would the Market for Smartphones Be Affected If the Government

question 113

Multiple Choice

How would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold?

• A) The supply of smartphones would decrease.
• B) The demand for smartphones would increase.
• C) The demand for smartphones would decrease.
• D) The price of smartphones would rise by $5.00.

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Definitions:

Generalized Anxiety Disorder

A mental health condition characterized by persistent and excessive worry about various aspects of life, beyond that of normal stress.

Specific Phobia

An intense, irrational fear of a specific object, situation, or activity that leads to avoidance behavior.

Panic Disorder

A psychiatric disorder characterized by recurrent unexpected panic attacks—sudden periods of intense fear or discomfort that may include palpitations, sweating, and feelings of impending doom.

Obsessive-Compulsive Disorder

Obsessive-Compulsive Disorder (OCD) is a mental disorder characterized by recurrent, unwanted thoughts (obsessions) and/or repetitive behaviors (compulsions).