When a Tax Is Imposed on a Good, Consumer Surplus

question 98

True/False

When a tax is imposed on a good, consumer surplus decreases and producer surplus remains unchanged.

---

Definitions:

Elderly Person

An individual considered to be in the later stage of life, often defined as being 65 years old or older, who may face various health-related, social, and psychological challenges.

Biological Perspective

An approach in psychology and biology that considers genetics, brain systems, and biochemical processes in understanding human behavior and mental health.

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior, potentially causing distress or problems functioning in social, work, or family activities.

Cognitive Distortion

A psychological phenomenon where an individual's thinking becomes biased or distorted, leading to flawed conclusions or negative thinking patterns.