When a Tax Is Placed on the Buyers of Cell

question 157

Multiple Choice

When a tax is placed on the buyers of cell phones,the size of the cell phone market

• A)and the effective price received by sellers both decrease.
• B)decreases,but the effective price received by sellers increases.
• C)increases,but the effective price received by sellers decreases.
• D)and the effective price received by sellers both increase.

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Definitions:

Current Assets

Assets owned by a company that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to determine investment worth.

Long-Term Liabilities

Financial obligations of a company that are due after more than one year.

Intangible Assets

Non-physical assets held by a company, such as patents, trademarks, copyrights, and goodwill, that add value to the business.