The Graph Shown Demonstrates a Tax on Buyers

question 12

Multiple Choice

The graph shown demonstrates a tax on buyers. After the tax has been imposed, sellers produce _______ units, and the post-tax price received for each one sold is _______.

• A) 6; $22
• B) 6; $34
• C) 9; $18
• D) 9; $30

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Definitions:

Induces

Induces means to lead or move someone to take action, often by persuasion or influence.

National Saving

The total amount of savings in a country, equal to the sum of private and public savings, representing the portion of national income not used for consumption or government spending.

Consumption

Consumption involves the use of goods and services by households, constituting one of the main components of aggregate demand in an economy.

Government Purchases

Spending by the government on goods and services that are included in the calculation of the country's gross domestic product.