When a Tax Is Imposed on a Good, the

question 83

Multiple Choice

When a tax is imposed on a good, the

• A)supply curve for the good always shifts.
• B)demand curve for the good always shifts.
• C)amount of the good that buyers are willing to buy at each price always remains unchanged.
• D)equilibrium quantity of the good always decreases.

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Definitions:

Prefrontal Cortex

The part of the human brain associated with decision making, complex cognitive behavior, and the expression of personality.

Limbic System

A complex system of nerves and networks in the brain, responsible for controlling basic emotions and drives.

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and expressive behavior.

Myelination

The process in which neurons are coated in a fatty substance, myelin, which contributes to faster neural communication.