When a Tax Is Imposed on Buyers, Consumer Surplus and Producer

question 90

True/False

When a tax is imposed on buyers, consumer surplus and producer surplus both decrease.

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Definitions:

Translocation

In genetics, structural rearrangement in which a broken piece of chromosome has become reattached in the wrong location. In plants, movement of organic compounds through phloem.

Casparian Strip

Waxy band between the plasma membranes of abutting root endodermal cells; forms a seal that prevents soil water from seeping through cell walls into the vascular cylinder.

Endodermis

In a plant root, a sheet of cells just outside the vascular cylinder. A Casparian strip between these cells prevents water from seeping through their walls.

Epidermis

The outermost layer of cells covering the body of an organism, often serving as a barrier to the environment.