When a Tax Is Levied on a Good or Service

question 13

Multiple Choice

When a tax is levied on a good or service,

• A) the quantity of the good sold will not change.
• B) neither the price nor the quantity of the good sold will change.
• C) the price of the good sold will not change.
• D) the price and the quantity of the good sold will change.

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Definitions:

Skewed Distribution

Describes a situation in data distribution where the results are not symmetrically distributed, often leaning towards one side, either left or right.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.

Normal Model

A statistical model based on the normal (Gaussian) distribution, depicting how data points vary or are distributed around the mean.

Standard Deviation

An index reflecting how significantly a series of statistics diverges or spreads.