In Which of the Following Statements Are the Terms Demand

question 131

Multiple Choice

In which of the following statements are the terms demand, supply, quantity demanded, and/or quantity supplied used correctly?

• A) Changes in demand and supply cause changes in the equilibrium price.
• B) If the demand rises, supply rises.
• C) Oranges are cheaper in Florida and therefore the demand is greater in Florida.
• D) When the quantity demanded exceeds supply, the equilibrium price will rise.
• E) All of these

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Definitions:

Excise Taxes

Taxes charged on the sale of specific goods and services, such as alcohol and tobacco, often used as a tool for discouraging their consumption.

Sales Taxes

Taxes levied on the sale of goods and services, normally calculated as a percentage of their price.

Marginal Social Benefit

The additional benefit to society as a whole from an increase in the consumption or production of one more unit of a good or service.

Pollution

The introduction of contaminants into the natural environment that cause adverse change, often impacting air, water, and soil quality.