When a Tax Is Imposed on Some Good,what Usually Happens

question 114

Multiple Choice

When a tax is imposed on some good,what usually happens to consumer and producer surplus?

• A) They both increase.
• B) They both fall to zero.
• C) They both decrease.
• D) Consumer surplus increases and producer surplus decreases.
• E) Consumer surplus decreases and producer surplus increases.

---

Definitions:

Fierce Resolve

Strong determination or unwavering firmness in pursuing a goal or overcoming challenges.

Narcissism

A personality trait characterized by an inflated sense of self-importance, a deep need for admiration, and a lack of empathy for others.

Legitimizing Myths

Beliefs or narratives that are constructed to maintain and justify power dynamics or social inequalities within a society.

Optimal Distinctiveness

A theory that suggests people are motivated to achieve an ideal balance between inclusion within groups and differentiation from others.