Rather Than Prohibiting a Good or Service, the Government Might

question 123

Multiple Choice

Rather than prohibiting a good or service, the government might tax it. Imposing such a tax on a good or service _______ the equilibrium price and _______ the equilibrium quantity.

• A) raises; decreases
• B) raises; increases
• C) lowers; increases
• D) lowers; decreases

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Definitions:

Supply Chain Coordination

The synchronized efforts of all entities involved in a supply chain to ensure efficient and effective operations.

Performance Measures

Metrics or indicators used to assess the efficiency, effectiveness, and quality of operations and services within an organization.

Inventory Assignment

The process of allocating or designating specific quantities of inventory to particular orders, locations, or purposes.

Bullwhip Effect

A phenomenon in supply chain management where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand upstream.