What results when taxes are imposed on a commodity
A)There is never a deadweight loss.
B)Some consumers alter their consumption by not purchasing the taxed commodity.
C)Tax revenue will rise by the amount of the tax multiplied by the before-tax level of consumption.
D)Taxes will make the consumers who purchase the commodity worse off but not the consumers who do not purchase the commodity.

Question

Quizplus · Accepted Answer

When taxes are imposed on a commodity, some consumers may change their behavior by not purchasing the taxed commodity, leading to a deadweight loss.

What Results When Taxes Are Imposed on a Commodity