Within the Supply and Demand Model, a Tax Collected from the Buyers

question 51

Multiple Choice

Within the supply and demand model, a tax collected from the buyers of a good shifts the

• A) supply curve downward by the size of the tax per unit.
• B) supply curve upward by the size of the tax per unit.
• C) demand curve upward by the size of the tax per unit.
• D) demand curve downward by the size of the tax per unit.

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Definitions:

Implied Warranty

A legal presumption that a product will fulfill the basic functions for which it was sold, without being explicitly stated by the seller.

Merchantability

Concerns the basic standard of quality and functionality that goods sold must meet, implying they are fit for the general purpose for which they are sold.

Fitness

A state of health and well-being, often focused on the ability to perform physical activities or meet specific physical criteria.

Disclaimer

A statement that denies responsibility, limiting one's legal liability.