When a Tax Is Imposed on a Good, the

question 83

Multiple Choice

When a tax is imposed on a good, the

• A)supply curve for the good always shifts.
• B)demand curve for the good always shifts.
• C)amount of the good that buyers are willing to buy at each price always remains unchanged.
• D)equilibrium quantity of the good always decreases.

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Definitions:

Lowest Terms

The simplest form of a fraction, where the numerator and the denominator are reduced to their smallest possible values.

Mixed Numbers

Quantities that combine a whole number with a fraction less than one.

Lowest Terms

The simplest form of a fraction, with both the numerator and denominator reduced to their smallest possible numbers.

Fractions

A mathematical expression representing a part of a whole, usually in the form of a numerator and a denominator.