Imposing a Tax on Sales of a Product

question 50

Multiple Choice

Imposing a tax on sales of a product

• A) shifts the market demand curve for the product.
• B) shifts the market supply curve for the product.
• C) shifts both the market supply and demand curve for the product.
• D) has no effect on either the market demand or the market supply curve for the product.

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Definitions:

Table

A piece of furniture with a flat top and one or more legs, providing a level surface on which objects may be placed, and commonly used for eating, writing, working, or playing on.

Bill

A draft of a proposed law presented to a legislature for discussion and approval.

Teleological View

A perspective that interprets actions or events in terms of their purpose or goal rather than their cause.

Mechanistic

Pertaining to a viewpoint or theory that likens complex systems to mechanical objects, assuming all phenomena result from physical forces and can be explained by the laws of physics.