With a Downward Sloping Demand Curve and an Upward Sloping

question 171

Multiple Choice

With a downward sloping demand curve and an upward sloping supply curve for a product, placing an excise tax on this product will:

• A)increase equilibrium price and quantity.
• B)decrease equilibrium price and quantity.
• C)decrease equilibrium price and increase equilibrium quantity.
• D)increase equilibrium price and decrease equilibrium quantity.

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Definitions:

Deserts

Arid regions with extremely low rainfall, supporting limited plant and animal life, and characterized by harsh conditions such as high temperatures and low humidity.

Primary Consumers

Organisms that directly consume producers such as plants or algae, usually herbivores.

Cyanobacteria

Photosynthetic, bacteria-like organisms that can live in a wide range of habitats, known for their ability to produce oxygen in a process similar to plants.

Coriolis Effect

The apparent deflection of moving objects when viewed in a rotating frame of reference, such as Earth's rotation affecting wind and ocean currents.