How Would the Elimination of a Sales Tax Affect the Market

question 119

Multiple Choice

How would the elimination of a sales tax affect the market for a product that had been subject to the tax?

• A)The demand for the product would rise and the equilibrium price would fall by the amount of the tax.
• B)The equilibrium price for the product would fall by less than the amount of the tax.
• C)The reduction in government revenue from the tax would be made up by an increase in property taxes.
• D)The supply of the product would become more elastic.

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Definitions:

Sexism

Discrimination against people based on their sex rather than their individual merits.

Anatomical Appearance

The visual characteristics of an organism's body structure and physical form.

Behavioral Genetics

The field of study that examines the role of genetic and environmental influences on behaviors.

Dominant Hormones

Hormones that have a major influence on certain body processes or parts, such as testosterone and estrogen, which respectively dominate in male and female bodies.