When a Tax Is Imposed on Consumers the Demand Curve

question 119

Multiple Choice

When a tax is imposed on consumers the demand curve will:

• A) shift downward by the amount of the tax.
• B) shift upward by the amount of the tax.
• C) shift downward by less than the amount of the tax.
• D) not shift since sellers collect per-unit taxes.

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Definitions:

Incompatibility

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Extramarital Affair

A sexual relationship that occurs outside of marriage and violates the marital agreement between spouses.

Macro-Level

Pertaining to the large-scale, societal view of structures and processes, often in contrast to individual or micro-level perspectives.

African Americans

In the United States, a group identified by race or ethnicity, originating from any African black racial groups.