When a Tax Is Placed on a Product,the Price Paid

question 229

Multiple Choice

When a tax is placed on a product,the price paid by buyers

• A)rises,and the price received by sellers rises.
• B)rises,and the price received by sellers falls.
• C)falls,and the price received by sellers rises.
• D)falls,and the price received by sellers falls.

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Definitions:

Detrimental Reliance

A legal principle where a party suffers a loss due to their reliance on a promise or agreement that is not fulfilled by the other party.

Unenforceable Contract

A contract that is not legally binding and cannot be enforced by law due to certain deficiencies or lack of key requirements.

Adequacy of Consideration

A legal principle that examines whether the value exchanged in a contract is fair and reasonable to all parties involved.

Contract Formation

The process by which parties agree on the terms of a contract, leading to a binding agreement; typically involves offer, acceptance, consideration, and mutual intent.