A Tax Placed on a Good

question 202

Multiple Choice

A tax placed on a good

• A)causes the effective price to sellers to increase.
• B)affects the welfare of buyers of the good but not the welfare of sellers.
• C)causes the equilibrium quantity of the good to decrease.
• D)creates a burden that is usually borne entirely by the sellers of the good.

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Definitions:

Price Discount

A reduction from the usual cost of an item or service to encourage purchase.

Uterine Tube

Also known as the fallopian tube, it is a part of the female reproductive system that connects the ovaries to the uterus, allowing the passage of eggs.

Uterus

A female reproductive organ where a fertilized egg implants and develops into a fetus; also known as the womb.

Vagina

A muscular and tubular part of the female genital tract, which extends from the vulva to the cervix and plays significant roles in intercourse, childbirth, and the passage of menstrual flow.