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:

Instrumental Role

Responsible for engaging in paid labour outside the home.

Expressive Role

Responsible for the emotional well-being of family members and the socialization of children.

Hegemonic

Relating to the dominant influence or authority over others, often in a cultural, societal, or political context.

Transsexual

An individual whose gender identity differs from the sex they were assigned at birth, and who may seek to transition physically through medical interventions.