When a Tax Is Imposed on a Good

question 327

Multiple Choice

When a tax is imposed on a good,

• A) the supply curve for the good always shifts.
• B) the demand curve for the good always shifts.
• C) the amount of the good that buyers are willing to buy at each price always remains unchanged.
• D) the equilibrium quantity of the good always decreases.

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Definitions:

Eyewitness

Refers to an individual who personally sees or experiences an event, and can therefore report their observations.

Smashed

In psychological experiments, particularly those related to memory and suggestion, "smashed" is often used to describe the influence of specific wording on participants' memory recall, such as their estimation of speed in a car accident.