Taxes Almost Always Cause Producer Prices to Decrease

question 61

Multiple Choice

Taxes almost always cause producer prices to decrease.How much they decrease depends on

• A) the elasticities of supply and demand.
• B) the amount of the tax.
• C) who is legally obligated to pay the tax.
• D) who pays the tax out of pocket.
• E) how often the government collects the tax.

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Definitions:

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Creative Process

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Work Process Problems

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