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 closed economy is one that (a) does not import or export goods and services but (b) does borrow from other nations and/or lend to other nations. a. True b. False
Answers (1)
When computing the opportunity cost of attending a concert you should include Select one: a. the price you pay for the ticket and the value of your time. b. the price you pay for the ticket, but not the value of your time. c.
Answers (1)
Jake receives a promotion at his law firm after winning an important case. this is an example of a:
Answers (1)
Michelle bought word-processing software in 2009 for $75. Michelle's cousin, Barry, bought an upgrade of the same software in 2010 for $75. To which problem in the construction of the CPI is this situation most relevant? a. substitution bias b.
Answers (1)
The beginning DV LIFO inventory is $20,000. That inventory in year dollars is $17,000. The ending inventory at FIFO cost is $35,000. The price level for the period is 1.25. The ending DV LIFO inventory is $28,000. False/True
Answers (1)
New Questions in Business
Differentiate between needs and wants?
Answers (1)
On January 1, 2021, a company issues $800,000 of 8% bonds, due in ten years, with interest payable semi annually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $856,850.
Answers (1)
Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90.
Answers (1)
In the resource-based model of above-average returns, a capability is: a. an input into a firm's production process. b. the foundation for a firm's mission. c.
Answers (1)
Choose the correct statementA. Total revenue from the sale of a good equals the price of the good multiplied by the quantity sold. B. A rise in price increases total revenue. C. A rise in the price decreases total revenue. D.
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?