If a Tax Shifts the Demand Curve Downward

question 100

Multiple Choice

If a tax shifts the demand curve downward,

• A)we can infer that the tax was levied on buyers of the good.
• B)we can infer that the tax was levied on sellers of the good.
• C)we can infer that the tax was levied on both buyers and sellers of the good.
• D)we cannot infer anything because the shift described is not consistent with a tax.

---

Definitions:

With Compensation

Refers to adjustments made to counterbalance or mitigate a deficit or disability, allowing for improved function or achievement of a desired outcome.

Crystallized Intelligence

Refers to the knowledge and skills acquired through experience and education that can be applied to problem-solving situations.

Nonsense Words

Strings of letters which do not form meaningful words in any language, often used in experiments testing phonological processing.

Formal Procedures

Established or prescribed methods for conducting activities or actions in a structured way.