When a Tax Is Imposed on a Market

question 152

Multiple Choice

When a tax is imposed on a market:

• A) the price the buyer pays is higher than the amount the seller receives.
• B) the buyers' equilibrium tax-inclusive price increases and the equilibrium quantity decreases.
• C) fewer total transactions take place in the market.
• D) All of these are true.

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Definitions:

Functional Strategy

A plan of action developed by a department within an organization to support the overall business strategy and competencies.

Strategic Analysis

The process of researching an organization’s business environment and its internal context to craft strategies for future success.

Competitive Position

A company's standing or rank in the marketplace in comparison to its competitors, typically assessed in terms of market share, profitability, and brand strength.

Business Strategy

A plan of action designed to achieve a set of objectives that will ensure the long-term success and viability of a business.