In the Figure Above,if Price INCREASES from $40 to $60,an

question 74

Multiple Choice

In the figure above,if price INCREASES from $40 to $60,an arrow representing the PRICE effect

• A)will point upward.
• B)will point downward.
• C)will be longer than and in opposite direction of)the arrow representing the quantity effect.
• D)will be shorter than and in the opposite direction of)the arrow representing the quantity effect.
• E)both a and c

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Definitions:

Sellers Receive

Refers to the revenue or payment that sellers get in exchange for providing goods or services in a market.

Tax

Mandatory financial contributions imposed by a government on individuals, corporations, or goods to fund public expenditures.

Tax Burden

The measure of the total amount of taxes imposed by government on individuals, corporations, goods, and services, affecting the income and purchasing power of taxpayers.