Tax Problem

question 44

Multiple Choice

Tax Problem. Consider a perfectly competitive market were demand is Q = 100 - P and Supply is
Q = P - 10.

-Refer to Tax Problem. If the government imposes a $10 per unit consumption tax, then how much consumer surplus will there be after the tax.

• A) 600.
• B) 800.
• C) 1000.
• D) 1600.

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Definitions:

Social Allergy Effect

A psychological phenomenon where repeated small irritations in close relationships lead to a significant negative reaction.

Annoyed

The feeling of being irritated or bothered by something or someone, often leading to discomfort or frustration.

Habits

Basically, routine behaviors that are performed regularly and often automatically.

Social Allergy Effect

A phenomenon where repeated exposure to certain behaviors or habits of others leads to an increasingly negative and irritated reaction over time.