Asked by
Ciara Butow
on Nov 17, 2024
Verified
When a tax is imposed on a good, the result is always a shortage of the good.
Shortage
A situation in which the demand for a product or service exceeds the supply available at a specific price.
Tax on Good
A financial charge imposed by a government on the sale of a product or service, affecting its price.
- Explore the consequences of tax imposition on market volume and equilibrium pricing.
Verified Answer
KK
Learning Objectives
- Explore the consequences of tax imposition on market volume and equilibrium pricing.