Refer to Scenario 19

question 67

Multiple Choice

Refer to Scenario 19.3 below to answer the question(s) that follow.
SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.
-Refer to Scenario 19.3. Prior to the imposition of the tax consumer surplus was ________ and after the tax was imposed consumer surplus was ________.

• A) $100; $64
• B) $64; $100
• C) $200; $128
• D) $50; $32

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Definitions:

Synergy

A product of group effort whereby the output of the group exceeds the output possible if the members worked alone.

Hotdog Eating Contests

Competitive eating events where participants race to eat as many hotdogs as possible within a given time limit.

Learning-Goal Orientation

A mindset focused on developing new skills, knowledge, and competencies, rather than merely demonstrating proficiency.

Competency

The combination of skills, knowledge, abilities, and behaviors that are necessary to perform a specific task or role effectively.