Solved

When a Tax Is Imposed on Some Good,what Usually Happens

Question 64

Multiple Choice

When a tax is imposed on some good,what usually happens to consumer and producer surplus?


A) They both increase.
B) They both fall to zero.
C) They both decrease.
D) Consumer surplus increases and producer surplus decreases.
E) Consumer surplus decreases and producer surplus increases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents