Refer to the Information Provided in Figure 24

question 131

Multiple Choice

Refer to the information provided in Figure 24.1 below to answer the question(s) that follow. Figure 24.1
-Refer to Figure 24.1. Suppose that the consumption function is C = 400 + 0.5Yd and taxes are $200 billion, at equilibrium, what is the value of consumption?

• A) $2,000
• B) $1,350
• C) $1,300
• D) $1,150

---

Definitions:

Agreements

Arrangements or contracts between parties defining their rights, responsibilities, and relationships.

Kinked-Demand

A demand curve hypothesis in oligopolistic markets that explains why firms may not change their prices even when costs change, due to competitive reactions.

Oligopolist

A firm or business that is part of a market structure where a few companies dominate the industry, often leading to limited competition.