If a Pigovian Tax Is Levied on Consumers,the Demand Curve

question 88

Multiple Choice

If a Pigovian tax is levied on consumers,the demand curve will shift:

• A) straight up, decreasing quantity.
• B) straight down, decreasing quantity.
• C) straight down, increasing quantity.
• D) straight up, increasing quantity.

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Definitions:

Erroneous Denial

A mistaken rejection, often relating to claims or applications, where the refusal was based on incorrect information.

Breach Of Warranty

Occurs when a product or service fails to meet the terms or conditions explicitly or implicitly stated in a warranty agreement.

Material

Pertaining to or consisting of physical substances, or in legal contexts, information of such significance that it could influence a decision.

Insurer's Risk

The risk borne by an insurance company, being the potential financial loss they accept when providing policies to insureds.