The Government Raises the Tax on Shirts

question 111

Multiple Choice

The government raises the tax on shirts. The tax is imposed on sellers. As a result, the

• A) demand curve for shirts becomes vertical.
• B) demand curve for shirts becomes horizontal.
• C) supply curve of shirts shifts rightward.
• D) supply curve of shirts shifts leftward.

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Definitions:

Price

The amount of money expected, required, or given in payment for something.

Fixed Budget Performance Reports

Financial reports comparing actual results to a plan that does not change, regardless of the level of activity.

Actual Results

The real, measured outcomes of financial or operational activities within a given period.

Fixed Budget

A financial plan that does not change or fluctuate with the volume of business activity.