-The Above Figure Shows the Australian Market for Replacement Mobile

question 56

Multiple Choice

-The above figure shows the Australian market for replacement mobile phone batteries. Suppose the Australian government imposes the tariff illustrated in the figure. The tariff is equal to ________ and the price Australian consumers pay ________ compared to the price paid when there was free trade.

• A) $14; increases
• B) $14; decreases
• C) $2; increases
• D) $2; decreases
• E) $12; increases

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Definitions:

Emotional Valence

Emotional valence refers to the intrinsic attractiveness(positive) or averseness(negative) of an event, object, or situation.

Bounded Rationality

Bounded Rationality is a concept suggesting that the cognitive limitations of the mind and the finite amount of time available to make decisions affect the rationality of individuals.

Limited Information

The condition of having incomplete data or knowledge concerning a particular topic or situation.

Problem Space

Problem space refers to the concept in cognitive science and problem-solving research that represents all possible states and actions that could be taken to solve a problem, from the initial state to the goal state.