One Result of a Tax,regardless of Whether the Tax Is

question 190

Multiple Choice

One result of a tax,regardless of whether the tax is placed on the buyers or the sellers,is that the

• A)equilibrium quantity of the good is unchanged.
• B)price the buyer effectively pays is lower.
• C)supply curve for the good shifts upward by the amount of the tax.
• D)tax reduces the welfare of both buyers and sellers.

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Definitions:

Prices of Inputs

The costs associated with purchasing the raw materials, labor, and other resources needed to produce goods or services.

Produce

To create or manufacture goods from raw materials, often associated with agricultural products and food production.

Transport

The movement of people, animals, or goods from one location to another through various modes such as road, rail, air, or sea.

Price of Coconuts

This refers to the market value at which coconuts can be bought or sold, influenced by factors such as supply, demand, and geographical location.