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:

Post Hoc, Ergo Propter Hoc

A logical fallacy that implies that if one event follows another, then the first event must have caused the second.

Fallacy Of Composition

The misconception that what is true for an individual or part will also be true for the whole or the group.

Co-Dependence

A relationship in which parties rely on each other to a detrimental extent, often undermining their independence and well-being.

Ockham's Razor

A principle suggesting that the simplest explanation is usually the correct one, often applied in various fields to eliminate unnecessary assumptions.