A Tax That Causes the Price That Producers Receive for a Commodity

question 16

Multiple Choice

A tax that causes the price that producers receive for a commodity to deviate from the buyer's price is

• A) an unit tax.
• B) a compensated tax.
• C) an income tax.
• D) a price-distorting tax.

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Definitions:

Void Contract

A contract that has no legal effect and is unenforceable from its inception due to certain legal deficiencies or violations.

Unenforceable Contract

An agreement that is not legally binding, either due to its failure to meet certain legal requirements or because it involves illegal activities.

Contractual Duties

Obligations that a party is bound to perform under the terms of a contract.

Void

That which is entirely null. A void act is one that is not binding on either party and that is not susceptible of ratification.