Suppose a Scientific Report States That Fish Contain Dangerously High

question 11

Multiple Choice

Suppose a scientific report states that fish contain dangerously high levels of mercury (toxic to humans) . At the same time, the price of diesel fuel, used by fishermen to fuel their boats, falls. What is the effect on the market for fish?

• A) A decrease in demand and a fall in price and quantity sold
• B) A decrease in demand and supply; price and quantity sold falls
• C) A decrease in demand and an increase in supply; price falls but the change in quantity is ambiguous
• D) A decrease in demand and supply; price and quantity sold rises

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Definitions:

Tax

is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization to fund government spending and various public expenditures.

Sellers

People or organizations that make products or provide services available for purchase in the marketplace.

Tax Per Unit

A tax imposed on each unit of a good or service produced or sold, often used by governments to generate revenue or discourage consumption.

Tax

A mandatory monetary contribution or different kinds of charges laid on a taxpayer by government institutions to support government expenses and diverse public costs.