A Tax on a Product

question 350

Multiple Choice

A tax on a product

• A) has no impact on quantity demanded.
• B) always decreases quantity demanded more than quantity supplied.
• C) creates a difference between the price paid by the buyer and the price received by the seller.
• D) usually has a negligible burden.

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Definitions:

Product

Substance formed by a chemical reaction. Compare with reactant.

Valence Shell

The outermost shell of an atom containing the electrons most involved in forming chemical bonds.

Nitrogen

A chemical element with symbol N and atomic number 7, essential for all living organisms as it is a key component of amino acids and nucleic acids.

Electrons

Particles within atoms that carry a negative electrical charge and serve as the main conductors of electrical current in solids.