If a $10 Sales Tax Is Imposed on a Good

question 225

Multiple Choice

If a $10 sales tax is imposed on a good and the equilibrium price increases by $10, the tax is

• A)split between buyers and sellers but not evenly.
• B)paid fully by sellers.
• C)paid fully by buyers.
• D)split evenly between buyers and sellers.
• E)impossible to determine the incidence of without further information.

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Definitions:

Electrical Synapses

Specialized junctions between cells that allow for direct passage of ions and electrical signals, enabling rapid communication.

Glial Cells

Supportive cells in the central nervous system that do not produce electrical impulses but perform functions such as nutrient support, waste cleanup, and myelin formation around neurons.

Histamine

A compound involved in local immune responses, functioning as a neurotransmitter and playing a role in regulating physiological function in the gut and acting as a mediator of itching.