If a Good Has a Tax Levied on It,sellers Respond

question 167

Multiple Choice

If a good has a tax levied on it,sellers respond to the price that excludes the tax and not the price with the tax because

• A) the tax is handed over to the state directly by buyers.
• B) sellers do not get to keep the tax revenue.
• C) the demand for the good has decreased.
• D) the quantity supplied of the good increases.
• E) demanders pay none of the tax.

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Definitions:

Posterior Cruciate Ligament

A ligament in the knee that connects the femur to the tibia and helps stabilize the knee joint.

Anterior Cruciate Ligament

A key ligament in the knee that stabilizes the joint by preventing the tibia from sliding too far forward beneath the femur.

Posterior Fontanel

The junction where the two parietal bones and the occipital bone meet on the skull of a newborn, typically closing by 2 months of age.

Anterior Fontanel

The soft spot on the top of a baby's head where the skull bones have yet to fuse.