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.

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Definitions:

Social Enterprise

An organization that applies commercial strategies to maximize improvements in human and environmental well-being, rather than maximizing profits for shareholders.

American Express

A multinational financial services corporation known for its credit card, charge card, and traveler's cheque businesses.

Competitive Marketplace

An economic concept where multiple businesses offer similar products or services, vying for customer attention and market share.

External Environment

The outside factors or influences that impact the operations and success of an organization, including economic, social, and political conditions.