Any tax on a good can:
A) discourage consumption of the good.
B) discourage production of the good.
C) create a new source of public revenue.
D) All of these are true.
Correct Answer:
Verified
Q30: Because a price ceiling causes:
A)a shortage,rationing must
Q32: An effective price ceiling:
A)will cause quantity demanded
Q33: Taxes:
A)are the main way that governments raise
Q34: An effective price floor:
A)will cause quantity demanded
Q36: An effective price ceiling:
A)must be set above
Q37: An unintended consequence of price ceilings is:
A)non-price
Q38: An effective price floor:
A)must be set above
Q39: A prominent argument against the use of
Q40: An unintended consequence of price floors is:
A)non-price
Q96: A tax on sellers:
A) shifts the supply
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