-The Graph Shows the Market for Textbooks

question 22

Multiple Choice

-The graph shows the market for textbooks. If the government introduces a tax of $20 a textbook, then the price paid by buyers

• A) increases to $80 a textbook.
• B) increases by $20.
• C) decreases to $60 a textbook.
• D) is $70 a textbook.
• E) does not change because the demand for textbooks is perfectly elastic.

---

Definitions:

Standard Deviation

A gauge for determining the level of difference or scattering in a series of amounts.

Mean High Temperature

The average of the highest temperatures observed over a specified period.

Normal Distribution

A symmetric, bell-shaped distribution of values in which the mean, median, and mode are all equal and located at the center of the distribution.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean, while a high standard deviation indicates that the values are spread out over a wider range.