Which of the Following Statements Is True for Markets in Which

question 39

Multiple Choice

Which of the following statements is true for markets in which the demand curve slopes downward and the supply curve slopes upward?

• A)As the size of the tax increases,tax revenue continually rises and deadweight loss continually falls.
• B)As the size of the tax increases,tax revenue and deadweight loss rise initially,but both eventually begin to fall.
• C)As the size of the tax increases,tax revenue rises initially,but it eventually begins to fall;deadweight loss continually rises.
• D)As the size of the tax increases,tax revenue rises initially,but it eventually begins to fall;deadweight loss falls initially,but eventually it begins to rise.

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Definitions:

Board Recommendation

Guidance or advice formally given by a company's board of directors, often regarding strategic decisions or governance practices.

Consensus Leader

The person in charge who encourages group discussion about an issue and then makes a decision that reflects general agreement and that group members will support.

Innovative Marketing

Marketing strategies that employ creative and unconventional methods to engage consumers and promote products or services.

Final Call

The last opportunity to make a decision, purchase, or participate in an activity before a final deadline.