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:

Standard Deviation

A measure that describes the amount of variation or dispersion of a set of values from the mean, indicating the spread or variability of the data.

Mean

Calculated by dividing the total of the numbers by their quantity, the average represents the mean value of a set.

Median

The middle value in an ordered list of numbers, effectively dividing the dataset into two halves.

Central Location

The midpoint or center of a dataset where it tends to cluster around.