Use the Following to Answer Question

question 106

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,producers will receive _____ less per app and sell _____ fewer apps.

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

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Definitions:

Equity Method

An accounting technique used in consolidating financial statements whereby an investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net income or losses.

Voting Shares

Shares of a company's stock that grant the shareholder the right to vote on corporate matters.

Purchase

The acquisition of goods or services in exchange for money, contributing to a company's expenses.

Consolidated Retained Earnings

The accumulated net income of a corporation and its subsidiaries after dividends have been paid out to shareholders.