When a Tax Is Imposed on Consumers the Demand Curve

question 119

Multiple Choice

When a tax is imposed on consumers the demand curve will:

• A) shift downward by the amount of the tax.
• B) shift upward by the amount of the tax.
• C) shift downward by less than the amount of the tax.
• D) not shift since sellers collect per-unit taxes.

---

Definitions:

Sample Regression Equation

A formula that estimates the relationship between variables using data from a sample, predicting the dependent variable based on independent variables.

Intercept Term

A reworded definition; represents the constant value in a linear model that shows the outcome's expected value when all predictors equal zero.

Interaction Term

In regression analysis, it's a variable created from the product of two or more variables to assess how the simultaneous influence of those variables on the outcome differs from the sum of their individual effects.

Dependent Variable

The variable in an experiment that is expected to change as a result of changes made to the independent variable.