If a Tax Did Not Induce Buyers or Sellers to Change

question 52

True/False

If a tax did not induce buyers or sellers to change their behaviour,it would not cause a deadweight loss.

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Definitions:

Decrease Eating

A deliberate reduction in the amount of food consumed, typically for health, dietary, or psychological reasons.

Leptin

A hormone produced by fat cells that regulates energy balance by inhibiting hunger, thereby regulating body weight.

Fat Cells

Cells known as adipocytes that store fat and play a crucial role in maintaining energy balance in the body.

Appetite Regulation

The biological and psychological mechanisms that control the amount and types of food consumed, influenced by hormonal and neural signals.