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When a Tax Is Imposed on a Good,the Resulting Rise

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When a tax is imposed on a good,the resulting rise in the equilibrium price is usually less than the amount of the tax itself.Why doesn't the equilibrium price rise by the full amount of the tax?


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Standard of Care

A legal benchmark requiring individuals to exercise reasonable care and skill when performing actions that could foreseeably harm others.

Occupier

An individual or group that resides in or takes possession of a particular place or property.

Property

Legal rights over assets, tangible or intangible, that allow the owner to use, enjoy, and dispose of these assets.

Legal Position

An individual's or entity's rights, responsibilities, and standing under the law.

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