Which of the Following Quantities Decrease in Response to a Tax

question 1

Multiple Choice

Which of the following quantities decrease in response to a tax on a good?

• A)The equilibrium quantity in the market for the good, the effective price of the good paid by buyers, and consumer surplus
• B)The equilibrium quantity in the market for the good, producer surplus, and the well-being of buyers of the good
• C)The effective price received by sellers of the good, the wedge between the effective price paid by buyers and the effective price received by sellers, and consumer surplus
• D)It depends on whether the tax is levied on buyers or on sellers.

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Definitions:

Shoreline Stones

Rocks found along the shorelines, often shaped by the continuous action of waves and tidal movements.

Wave Base

The maximum depth at which water wave motion can significantly move sediment on the ocean or lake floor.

Approach Shore

The action or process of coming closer to the shoreline or coast.

Wave Base

The maximum depth in a body of water at which wave action can move sediments on the seabed, typically correlating with half the wavelength of surface waves.