When a Good Is Made Illegal, Which of the Following

question 53

Multiple Choice

When a good is made illegal, which of the following definitely results in the price rising?

• A) a much higher fine on sellers than on buyers
• B) a much higher fine on buyers than on sellers
• C) any fine imposed on both buyers or sellers
• D) any fine imposed on buyers

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Definitions:

Selling Prices

The actual amount that a customer pays for a product or service, which can include discounts, promotions, and taxes.

Markup

The amount added to the cost price of goods to cover overhead and profit, determining the selling price of the product.

Selling Price

The cost at which an item is offered to buyers in the marketplace.

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and factory overhead.