Which of the Following Takes Place When a Tax Is

question 42

Multiple Choice

Which of the following takes place when a tax is placed on a good?

• A) A decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold.
• B) An increase in the price buyers pay, a decrease in the price sellers receive, and an increase in the quantity sold.
• C) A decrease in the price buyers pay, an increase in the price sellers receive, and an increase in the quantity sold.
• D) An increase in the price buyers pay, a decrease in the price sellers receive, and a decrease in the quantity sold.

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Definitions:

Independent Variables

Variables in an experiment or statistical model that are manipulated or categorized to determine their effect on dependent variables.

Dependent Variables

Variables in an experiment or test that respond to changes in other variables, often measured to assess an effect.

Negatively Linearly Related

Describes the relationship between two variables where an increase in one variable results in a decrease in the other, represented by a negative correlation coefficient.

Standard Error of the Estimate

A measure indicating the typical distance between the actual data points and the line of best fit in a regression analysis.