The Graphs Below Refer to Two Separate Product Markets

question 57

Multiple Choice

The graphs below refer to two separate product markets.Assume that society's optimal level of output in each market is Q₀ and that government purposely shifts the market supply curve from S to S₁ in diagram (a) and from S to S₂ in diagram (b) .The shift of the supply curve from S to S₁ in diagram (a) might be caused by a per unit:

• A)subsidy paid to the producers of this product.
• B)tax on the producers of this product.
• C)subsidy paid to the buyers of this product.
• D)tax on the buyers of this product.

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Definitions:

Declarative Memory

A type of long-term memory that involves the recollection of facts and events.

Hyperthymesia

A rare condition characterized by an extremely detailed autobiographical memory, allowing individuals to remember a vast number of personal experiences.

Rehearsal

The process of practicing or repeating information or skills to enhance memory retention or improve performance.

Relearning

The process of learning information or skills more quickly when they are studied again after having been partially or completely forgotten.