It Is Said That Taxes Drive a Wedge Between Prices

question 50

Multiple Choice

It is said that taxes drive a wedge between prices.This statement is true because taxes cause

• A) both consumer and producer prices to increase.
• B) the consumer price to increase but leave producer prices unchanged.
• C) both consumer and producer prices to decrease.
• D) the consumer price to decrease and the producer price to increase.
• E) the consumer price to increase and the producer price to decrease.

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Definitions:

Long-Term Loans

Financial obligations that are due for repayment in a period extending beyond one year.