Use the Following to Answer Question

question 164

Multiple Choice

Use the following to answer question:
Figure: Model of a Competitive Market
-(Figure: Model of a Competitive Market) Use Figure: Model of a Competitive Market.Given the figure,if there are external costs,a tax imposed on sellers will:

• A)decrease the equilibrium quantity.
• B)increase the equilibrium quantity.
• C)have no effect on the equilibrium price.
• D)decrease the equilibrium price.

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Definitions:

Carrying Amount

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Depreciation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, reflecting its wear and tear, obsolescence, or decline in value over time.