Suppose a Market Is in Equilibrium at Price P0,and Then

question 119

Multiple Choice

Suppose a market is in equilibrium at price P0,and then an excise tax of t dollars per unit of the good is imposed.At a price of (P0 + t) there will be excess ________ for the good unless the demand curve is ________.

• A)supply; horizontal
• B)supply; vertical
• C)demand; horizontal
• D)demand; vertical
• E)tax; unit elastic

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Definitions:

Bell

A resonant device that produces sound when struck, typically used for signaling or alarm purposes.

Light

Electromagnetic radiation within a certain portion of the electromagnetic spectrum, visible to the human eye and fundamental to vision and various biological processes.

Extinction Trials

Processes in which a conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus.

Conditioned Stimulus (CS)

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, triggers a conditioned response.