Taxes and In-Kind Transfers Make the Distribution of Income More

question 109

True/False

Taxes and in-kind transfers make the distribution of income more unequal.

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Definitions:

Demand Falls

Demand falls occur when there is a decrease in the quantity of a good or service demanded at any given price, often due to changes in consumer preferences, income, or price increases.

Supply Stays

A term that is not typically used in economic contexts; thus, it might not be a real key-term. NO.

Price Ceiling

A legally established maximum price a seller can charge for a product or service to prevent market prices from rising too high.

Equilibrium Price

The equilibrium price is the price at which the quantity of a good or service demanded by consumers matches the quantity supplied by producers, resulting in market balance.