Which of the Following Should Be Expected If the Tax

question 9

Multiple Choice

Which of the following should be expected if the tax for a certain good increases?

• A)price of the good increases.
• B)the composition of the commodity bundle is distorted.
• C)the budget line pivots out.
• D)only a and b.

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Definitions:

Boundary

A line or natural limitation that defines the extent of an area or the division between two areas, regions, or pieces.

Sand Dunes

Hills or ridges of sand piled up by the wind in desert environments or near beaches.

Meandering River

A river that has a strongly curved channel (with meanders).

Open Ocean

The vast, deep part of the sea that is not close to the coast or beyond the continental shelf.