Ask Question
BusinessBusiness
10 February, 15:59

3. If the government imposes a tax on the production of a good or service, what will happen to the equilibrium price

and quantity of the good?

a. Equilibrium price and quantity will both decrease

b. Equilibrium price and quantity will both increase

C. Equilibrium price will increase and equilibrium quantity will decrease

d. Equilibrium price will decrease and equilibrium quantity will increase

+4
Answers (1)
  1. 10 February, 19:09
    0
    The correct answer to the following question will be Option C.

    Explanation:

    Equilibrium price will rise while volume will indeed fall if analysts or economists find a commodity to be "natural", a rise in disposable income would result in something like a decline in demand and sale for the product. Like the demand for a strong increase, the quantity began demanding for the provided product should then be that according to the quantity needed.

    Other available scenarios have no connection with the particular circumstance. So choice C seems to be the perfect solution to that.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “3. If the government imposes a tax on the production of a good or service, what will happen to the equilibrium price and quantity of the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A company had no office supplies available at the beginning of the year. during the year, the company purchased $410 worth of office supplies. on december 31, $145 worth of office supplies remained.
Answers (1)
The following data is available for Pina Colada Corp. at December 31, 2017: Common stock, par $10 (authorized 28000 shares) $196000 Treasury stock (at cost $15 per share) $900 Based on the data, how many shares of common stock are outstanding?
Answers (1)
Which of the following statements does NOT accurately describe a line of credit? a. A line of credit is available immediately when needed. b. A line of credit provides an alternative source of funds if an emergency does develop. c.
Answers (1)
The United States is efficient at producing software and engineering services, but cannot produce clothes and electronics as efficiently as other nations.
Answers (1)
Mikail's perfectly competitive camera memory card-producing factory is making positive economic profits.
Answers (1)
New Questions in Business
According to the substages of Piaget's sensorimotor stage of development, which of the following statements about the coordination of secondary circular reactions is NOT true?
Answers (1)
The following statements regarding merchandise inventory are true except: Multiple Choice Merchandise inventory refers to products a company owns and intends to sell. Merchandise inventory appears on the balance sheet of a service company.
Answers (1)
Brief Exercise 5-9 Included in Sunland Company's December 31, 2017, trial balance are the following accounts: Accounts Payable $244,000, Pension Liability $383,400, Discount on Bonds Payable $33,800, Unearned Rent Revenue $46,300, Bonds Payable
Answers (1)
ABC company has just purchased a life truck that has a useful life of 5 years. The engineer estimates that maintenance costs for the truck during the first year will be $1,000.
Answers (1)
Mary buys cell-phone services from a company that charges $30 per month. For that $30 she is allowed 600 minutes of free calls and then pays 25 cents per minute for any calls above 600 minutes. Mary has used 300 minutes this month so far.
Answers (1)
Home » Business » 3. If the government imposes a tax on the production of a good or service, what will happen to the equilibrium price and quantity of the good? a. Equilibrium price and quantity will both decrease b.
Sign Up Forgot Password?