If a tax is placed on one good and not another, the effect that causes you to buy less of the taxed good because it has become relatively more expensive is called the

A. domino effect.
B. substitution effect.
C. net effect.
D. income effect.

Answer: B

Economics

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A key difference between clubs and government is _____

a. government requires everyone within its jurisdiction to participate b. government acts on behalf of the poor c. government is not frivolous, like most clubs d. government requires collective action

Economics

In the above figure, when the price of Good B increases, the result can be shown by

A) the movement from D1 to D2 in Graph A. B) the movement from D2 to D1 in Graph A. C) the movement along D0 from P1 to P2. D) the movement along D0 from P2 to P1.

Economics