Use the Table Below to Answer the Following Questions

question 99

Multiple Choice

Use the table below to answer the following questions.

-Refer to Table 3.5.1.Suppose a problem develops with car- seat heaters - they malfunction and occasionally cause serious burns.As a result, demand decreases by 100 heaters at each price.Simultaneously, the cost of production rises, and supply decreases by 100 heaters at each price.The new equilibrium price is $_______ and the new equilibrium quantity is _______ heaters per month.

• A)60; 300
• B)50; 350
• C)50; 450
• D)70; 350
• E)70; 450

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Definitions:

Regressive

Pertaining to a tax system in which the tax rate decreases as the taxable amount increases, commonly considered less fair because it imposes a heavier burden relative to income on those with less.

Progressive

Pertaining to a taxation system in which the tax rate increases as the taxable amount increases, imposing a higher percentage rate on the wealthy to ensure equity.

Consumption Tax

A tax on the purchase of goods or services, levied at the point of sale, designed to tax spending rather than income or savings.

Encourage Consumption

Measures or strategies aimed at increasing consumer spending and demand for goods and services.