Which of the Following Quantities Decrease in Response to a Tax

question 189

Multiple Choice

Which of the following quantities decrease in response to a tax on a good?

• A)the size of the market for the good, the effective price of the good paid by buyers, and consumer surplus
• B)the size of the market for the good, producer surplus, and the well-being of buyers of the good
• C)the effective price received by sellers of the good, the wedge between the effective price paid by buyers and the effective price received by sellers, and consumer surplus
• D)None of the above is necessarily correct unless we know whether the tax is levied on buyers or on sellers.

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Advanced networking technologies and infrastructure that support high-speed, reliable, and secure communication and data exchange over vast geographical areas.

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