A Tax on the Buyers of Personal Computer External Hard

question 75

Multiple Choice

A tax on the buyers of personal computer external hard drives encourages

• A)sellers to supply a smaller quantity at every price.
• B)buyers to demand a smaller quantity at every price.
• C)buyers to demand a larger quantity at every price.
• D)Both a)and b)are correct.

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Definitions:

Subscription Price

The cost charged to subscribe to a service or investment, such as a magazine subscription or the price to subscribe to shares in a rights issue.

Market Price

The marketplace value at this time for an asset or service.

Underwriting Fee

A fee charged by underwriters for assessing, guaranteeing, and distributing a new issue of securities to the public.

Common Stock

A type of ownership in a corporation that grants holders voting rights and a share in the company’s profits via dividends.