A Tax on Consumers Will Cause the Demand Curve to Shift

question 32

Multiple Choice

A tax on consumers will cause the demand curve to shift

• A) right.
• B) left.
• C) up.
• D) down.

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Definitions:

Total Revenues

The total amount of money generated by a firm from its sales activities before any expenses are subtracted.

Elastic

A description of a variable's sensitivity to change in another variable, often used in economics to describe how demand or supply responds to changes in price.

Price-elasticity Coefficient

A measure that calculates how much the quantity demanded of a good responds to a change in its price, quantitatively.

Revenues

The total income generated by a company from its business operations, such as sales of goods or services, before any costs or expenses are deducted.