In a Competitive Market,the Price of a Product

question 26

Multiple Choice

In a competitive market,the price of a product

• A)is determined by buyers,and the quantity of the product produced is determined by sellers.
• B)is determined by sellers,and the quantity of the product produced is determined by buyers.
• C)and the quantity of the product produced are both determined by sellers.
• D)None of the above is correct.

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Definitions:

Tax Burden

The distribution of tax payments among individuals or groups, often discussed in the context of equity and fairness.

Deadweight Loss

It represents the loss of economic efficiency when the equilibrium for a good or a service is not achieved or is not achievable.

Excise Tax

A tax directly levied on certain goods, services, or activities, such as tobacco, alcohol, or fuel, usually to discourage their use or generate revenue.

Short Run

A period during which at least one input (e.g., plant size, technology) is fixed, and firms can adjust only the variable inputs (e.g., labor).