How Would the Market for Smartphones Be Affected If the Government

question 113

Multiple Choice

How would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold?

• A) The supply of smartphones would decrease.
• B) The demand for smartphones would increase.
• C) The demand for smartphones would decrease.
• D) The price of smartphones would rise by $5.00.

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Definitions:

Accidents

Unplanned events that result in injury, damage, or harm in some way, often prompting investigations into ways to prevent them in the future.

Competitive Strategy

An approach a business takes to differentiate itself from its competitors, focusing on strengths to provide better value to customers.

Potential Customers

Individuals or entities that are considered likely to purchase a product or service but have not yet done so.

Products

Goods or services offered by businesses to consumers, intended to satisfy needs or wants.