UKCAT Practice Test 2025 – The All-in-One Guide to Master the UK Clinical Aptitude Test!

Question: 1 / 400

What would be a consequence of heavy taxes imposed on a product?

Lower demand for the product

Imposing heavy taxes on a product typically increases its retail price. According to the fundamental principles of economics, as the price of a product rises, the quantity demanded usually decreases, leading to lower demand for that product. Consumers may seek alternatives or reduce their consumption altogether because they find the taxed product less affordable. This results in the product becoming less appealing in the market, subsequently decreasing its demand.

The other choices do not align with the likely outcomes of heavy taxation. Increased production would generally occur with increased demand or subsidies, while an increase in taxes would instead put pressure on production to decrease. Improved quality and greater availability are also unlikely consequences, as higher taxes may not directly lead to enhancements in product attributes or increased supply in the market.

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Increased production of the product

Improved quality of the product

Greater availability of the product

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