Which of the Following Statements Is True for Markets in Which

question 39

Multiple Choice

Which of the following statements is true for markets in which the demand curve slopes downward and the supply curve slopes upward?

• A)As the size of the tax increases,tax revenue continually rises and deadweight loss continually falls.
• B)As the size of the tax increases,tax revenue and deadweight loss rise initially,but both eventually begin to fall.
• C)As the size of the tax increases,tax revenue rises initially,but it eventually begins to fall;deadweight loss continually rises.
• D)As the size of the tax increases,tax revenue rises initially,but it eventually begins to fall;deadweight loss falls initially,but eventually it begins to rise.

---

Definitions:

Prior Commercials

Television, radio, or internet advertisements that were aired or published before a current campaign or analysis period.

Gallaugher & Ransbotham

Researchers known for their contributions to understanding the digital business landscape and technology's impact on competition.

Microphone

A device for converting acoustic power into electric power that has an output signal voltage.

Megaphone

A metaphor to describe a means or channel that amplifies or broadcasts messages to a wide audience.