What Results When Taxes Are Imposed on a Commodity

question 181

Multiple Choice

What results when taxes are imposed on a commodity

• A)There is never a deadweight loss.
• B)Some consumers alter their consumption by not purchasing the taxed commodity.
• C)Tax revenue will rise by the amount of the tax multiplied by the before-tax level of consumption.
• D)Taxes will make the consumers who purchase the commodity worse off but not the consumers who do not purchase the commodity.

---

Definitions:

Toulouse

A city in southwestern France known for its rich history and significant role in the aerospace industry.

Paragraph Length

The measure of a paragraph in terms of number of sentences or words, affecting readability and structure in written text.

Paragraph Unity

The coherence and consistency of ideas within a paragraph, ensuring that all sentences support the main topic.

Two Subjects

Relates to discussing or addressing two distinct topics within a single context or framework.