When a Tax Is Placed on a Product,the Price Paid

question 229

Multiple Choice

When a tax is placed on a product,the price paid by buyers

• A)rises,and the price received by sellers rises.
• B)rises,and the price received by sellers falls.
• C)falls,and the price received by sellers rises.
• D)falls,and the price received by sellers falls.

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Definitions:

Direct Labor Cost

Expenses associated with employees who physically produce a product or are directly involved in providing a service.

Polishing Labor

The labor cost associated with the finishing or polishing stage of manufacturing to enhance the appearance or functionality of a product.

Sales Budget

A financial plan detailing the expected revenues from sales of products or services over a specific period.

Production Budget

An estimate of the total units that must be produced in a given period to meet sales demands and ending inventory requirements.