What Would Happen in the Market for SUVs If the Government

question 112

Multiple Choice

What would happen in the market for SUVs if the government started to subsidize the production of SUVs that get very few miles per gallon and the price of gasoline went up?

• A) The equilibrium price will go up and equilibrium quantity will go up.
• B) The equilibrium price will go down and equilibrium quantity will be indeterminate.
• C) The equilibrium price will be indeterminate and equilibrium quantity will go up.
• D) The equilibrium price will go up and equilibrium quantity will be indeterminate.
• E) The equilibrium price will be indeterminate and equilibrium quantity will go down.

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Definitions:

Enantiomer

Molecules that are mirror images of each other and cannot be superimposed onto each other, commonly found in chiral molecules.

Diastereomers

Non-mirror-image stereo isomers that have varying physical and chemical properties from each other.

Stereocenters

Chiral centers in a molecule, points at which the molecule can adopt different spatial arrangements leading to different stereoisomers.

Stereogenic Centers

Atoms within a molecule that are bonded to four different substituents, giving rise to stereoisomerism.