CIPS Exam A6 Topic 1 Question 50 Discussion

Actual exam question for CIPS's A6 exam

Question #: 50
Topic #: 1

[All A6 Questions]

According to economic theory, which of the following best describes what should happen to the sales of a product if the government increases the tax on them?

AThe sales increase

BThe sales decrease

CThe sales remain the same

DThe sales double.

Show Suggested Answer

Suggested Answer: C

by Colette at Apr 26, 2024, 03:43 PM

Limited Time Offer

25%

Off

Get Premium A6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Patria

8 months ago

Depends on elasticity, but usually demand drops. So, B makes sense.

upvoted 0 times

...

Katina

8 months ago

But what if people still need the product? Could it remain the same?

upvoted 0 times

...

Maryann

9 months ago

I put the same. More tax will make products more expensive.

upvoted 0 times

...

Delsie

9 months ago

Agreed. Higher tax generally means lower sales.

upvoted 0 times

...

Patria

10 months ago

Yeah, the best choice must be B) The sales decrease, right?

upvoted 0 times

...

Katina

10 months ago

Hey, the question on product sales tax was tricky.

upvoted 0 times

...