Use the Following to Answer Question

question 131

Multiple Choice

Use the following to answer question:
-(Figure: The Market for Productivity Apps) Use Figure: The Market for Productivity Apps.If the government imposes a tax of $1 in this market,consumers will pay _____ more per app and purchase _____ fewer apps.

• A)$1;5
• B)$1;25
• C)$0.50;5
• D)$0.50;20

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Definitions:

Regular Dividends

Payments made by a corporation to its shareholders out of its profits on a recurring basis.

Flotation Costs

The total costs a company incurs to issue new securities, including underwriting fees, legal expenses, and registration fees.

Homemade Dividends

Idea that individual investors can undo corporate dividend policy by reinvesting dividends or selling shares of stock.

Growth Rate

The rate at which a company, economy, or investment increases in size or value over a given period.