Assuming That Good X and Good Y Are Close Substitutes

question 73

Multiple Choice

Assuming that Good X and Good Y are close substitutes of each other,a per-unit sales tax on Good Y will:

• A)increase the demand for Good X.
• B)increase the demand for Good Y.
• C)decrease the supply of Good X.
• D)decrease the demand for Good X.

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Definitions:

Consolidations

The combination of two or more entities into a single entity, often with the aim of enhancing efficiency or competitiveness.

Mergers

The combination of two or more entities into one, through either the acquisition of one by another or the consolidation of the entities into a new entity.

Approval Certificate

A document issued by an authoritative body that verifies certain conditions have been met or standards have been achieved.

Appraisal Rights

The right of a shareholder to demand an independent evaluation of the value of shares before a major structural change in a corporation.