As Long as the Supply Curve for a Good Is

question 157

Multiple Choice

As long as the supply curve for a good is upward sloping and the demand curve is downward sloping, a sales tax imposed on sellers shifts the supply curve

• A) leftward and definitely raises the equilibrium price.
• B) leftward and possibly raises the equilibrium price.
• C) rightward and possibly increases the equilibrium quantity.
• D) rightward and definitely decreases the equilibrium quantity.

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Definitions:

Capacity

The legal competency to enter into agreements or contracts, often related to age, mental state, and understanding of obligations.

Valid Contract

A legally binding agreement between parties to do or not do certain things.

Avoid Liability

Strategies or actions taken to minimize or evade legal responsibility or penalties.

Intoxicated Person

An individual under the influence of alcohol or drugs to the extent that their mental and physical faculties are significantly impaired.