The Graph Shown Demonstrates a Tax on Sellers

question 20

Multiple Choice

The graph shown demonstrates a tax on sellers.Which of the following can be said about the effect of this tax?

• A) The tax creates a shortage, and rationing must occur.
• B) The tax creates a surplus, and the government must buy the excess.
• C) The tax creates a shortage, and the government must regulate the market.
• D) None of these is true.

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Definitions:

Role Confusion

A stage of psychosocial development where an individual is unsure about their identity or future roles in society, often occurring during adolescence.

Old Age

Old age is the latter part of life, typically defined as the period after retirement, or around the age of 65, characterized by both physical and cognitive changes.

Middle Adulthood

A stage of life typically ranging from about 40 to 65 years old, marked by increased personal and professional achievements, awareness of mortality, and often a focus on legacy.

Young Adulthood

A developmental stage typically referring to individuals aged between 18 to 40 years, characterized by exploration of personal and professional identities.