Broad-Based Taxes Collected on the Retail Price of Most Items

question 59

Multiple Choice

Broad-based taxes collected on the retail price of most items are called

• A)general sales taxes.
• B)ad valorem taxes.
• C)user taxes.
• D)hidden taxes.

---

Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market stability.

Shortage

A shortage occurs when the demand for a product exceeds its supply at a particular price, leading to a scarcity of the product.

Price Floor

A government-imposed limit below which prices cannot fall, often used in agricultural markets.

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, leading to market stability.