If a Tax Is Placed on Tires,then

question 15

Multiple Choice

If a tax is placed on tires,then
i.the equilibrium quantity of tires will decrease.
ii.a deadweight loss will be created.
iii.the producer surplus will decrease.

• A) i only
• B) ii only
• C) i and iii
• D) i and ii
• E) i, ii, and iii

---

Definitions:

Complex

A system or problem consisting of interconnected parts, characterized by its difficulty to understand, predict, or solve.

Production Processes

The methods and operations involved in the transformation of raw materials into finished goods or products.

Overt Behavior

Refers to actions and behaviors that are observable and measurable, as opposed to inner processes like thoughts and feelings.

Rigid Memory

A memory condition characterized by inflexibility, where past experiences overly dictate current behavior and thoughts.