Which of the Following Quantities Decrease in Response to a Tax

question 96

Multiple Choice

Which of the following quantities decrease in response to a tax on a good?

• A)the equilibrium quantity in the market for the good,the effective price of the good paid by buyers,and consumer surplus
• B)the equilibrium quantity in the market for the good,producer surplus,and the well-being of buyers of the good
• C)the effective price received by sellers of the good,the wedge between the effective price paid by buyers and the effective price received by sellers,and consumer surplus
• D)None of the above is necessarily correct unless we know whether the tax is levied on buyers or on sellers.

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Definitions:

Reward Systems

Are mechanisms set up by organizations to compensate, recognize, and motivate their employees.

Customer Feedback

Customer feedback refers to the information, insights, opinions, and reactions that a business receives from its customers regarding their experience with the company's products or services.

Increased Communication

Increased communication refers to enhancing the exchange of information in frequency and clarity among individuals or groups.

Resistance

The act of rejecting or not agreeing with something; trying to stop something through actions or reasoning.