When a Tax Is Imposed on a Product,what Happens to Quantity

question 163

Multiple Choice

When a tax is imposed on a product,what happens to quantity demanded and quantity supplied

• A)Quantity demanded will increase and quantity supplied will decrease.
• B)Quantity demanded will decrease and quantity supplied will increase.
• C)Quantity demanded and quantity supplied will both increase.
• D)Quantity demanded and quantity supplied will both decrease.

---

Definitions:

Progressed

Advanced or moved forward in development or improvement.

Nations

Vast collectives of individuals linked through shared ancestry, historical background, cultural practices, or linguistic similarities, residing in a specific nation or region.

Real GDP

The calculation of a nation's economic production, corrected for changes in prices due to inflation or deflation, to accurately represent the actual worth of the produced goods and services.

Economic Prosperity

A state of economic health in a country, characterized by a strong economy, low unemployment, and high levels of consumer spending.