Figure 99 Shows the Demand and Supply of a Product in in a Competitive

question 61

Multiple Choice

Figure 9.9 shows the demand and supply of a product in a competitive market.

-Refer to Figure 9.9 to answer the question.Suppose that this graph represents an industry with big external benefits and that the government wishes to increase its output by 10 units and lower its price.Which of the following will produce this result?

• A)Imposing an excise tax of $2.
• B)Imposing an excise tax of $1.
• C)Granting a subsidy of $2 to producers.
• D)Granting a subsidy of $1 to producers.
• E)Granting a subsidy of $2 to consumers.

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Definitions:

Peak Intensity

A measure of the strength or amplitude of a peak in a spectrum, indicating the relative quantity of the analyte present.

IR Spectrometer

An instrument used to measure the infrared light absorbance or transmittance of a substance, providing information about molecular vibrations.

Infrared Wavelength

Electromagnetic radiation wavelengths longer than visible light but shorter than microwaves, used in heating, remote controls, and night vision.

Wavenumber

A measure of the number of wave cycles per unit of distance, typically used in spectroscopy.