A tax on a good
举一反三
- A tax on a good
- If a quantity tax is collected from competitive suppliers of a good, placing a tax on the good causes the price paid by consumers to increase more than if the tax had been collected directly from the buyers.
- When a tax is levied on a good or service:
- When a tax is imposed on a good, the A: supply curve for the good always shifts. B: demand curve for the good always shifts. C: amount of the good that buyers are willing to buy at each price always remains unchanged. D: equilibrium quantity of the good always decreases.
- Which of the following should<br/>be expected if the tax for a certain good increases? ____________ A: price of the good falls. B: the composition of the<br/>commodity bundle is distorted C: the budget line pivots out. D: All of the listed.