When a Tax Is Imposed on the Buyers of a Good,the

question 186

Multiple Choice

When a tax is imposed on the buyers of a good,the demand curve shifts

• A)downward by the amount of the tax.
• B)upward by the amount of the tax.
• C)downward by less than the amount of the tax.
• D)upward by more than the amount of the tax.

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Definitions:

Merchandise Inventory

The total cost of all the goods held by a company for resale purposes, including goods in transit, on order, and in stock.

Net Income

Net income is the total earnings or profit a company makes after deducting all its expenses, including taxes, interests, and depreciation.