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hammer [34]
3 years ago
12

A deadweight loss is a consequence of a tax on a good because the tax

Business
1 answer:
mamaluj [8]3 years ago
4 0

Answer:

b. induces buyers to consume less, and sellers to produce less.

Explanation:

Because of the increase of tax on each good, it will cause a deadweight loss. At higher tax rates we consumers tend to consume less, the decrease in demand will inevitably decrease the supply therefore sellers will produce less.

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If a nation is going to achieve and sustain a high rate of economic growth, it must
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5 0
4 years ago
Consider a firm with a contract to sell an asset for $138,000 five years from now. the asset costs $74,000 to produce today. giv
shepuryov [24]

The cost to produce today = 74000

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The profit the firm will make on this asset (considering time value of money) = $7,586.72

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