Which of the Following Quantities Decrease in Response to a Tax

question 96

Multiple Choice

Which of the following quantities decrease in response to a tax on a good?

• A)the equilibrium quantity in the market for the good,the effective price of the good paid by buyers,and consumer surplus
• B)the equilibrium quantity in the market for the good,producer surplus,and the well-being of buyers of the good
• C)the effective price received by sellers of the good,the wedge between the effective price paid by buyers and the effective price received by sellers,and consumer surplus
• D)None of the above is necessarily correct unless we know whether the tax is levied on buyers or on sellers.

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Definitions:

Pinterest Board

A Pinterest board is a collection of pins on the Pinterest platform, usually organized around a specific theme or interest, allowing users to discover, save, and share content.

Buying Process

The series of steps a consumer goes through before, during, and after making a purchase, including recognition of need, information search, evaluation, and decision.

E-commerce

The buying and selling of goods and services over the internet, including the transfer of money and data to execute these transactions.

Social Commerce

A subset of electronic commerce that involves social media, online media that supports social interaction, and user contributions to assist online buying and selling of products and services.