In the Market for Widgets,the Supply Curve Is the Typical

question 145

Multiple Choice

In the market for widgets,the supply curve is the typical upward-sloping straight line,and the demand curve is the typical downward-sloping straight line.The equilibrium quantity in the market for widgets is 250 per month when there is no tax.Then a tax of $6 per widget is imposed.As a result,the government is able to raise $750 per month in tax revenue.We can conclude that the after-tax quantity of widgets is

• A)75 per month.
• B)100 per month.
• C)125 per month.
• D)150 per month.

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Definitions:

Undisclosed Principal

A party in a contract whose identity is not revealed to the third party by the agent, allowing the principal to conduct transactions anonymously.

Limited Partners

Investors in a partnership who are not involved in the day-to-day management of the business and whose liability is limited to the amount they have invested.

Insanity

When a person cannot understand the nature or consequences of his acts.

Court Order

A formal declaration made by a court that mandates or forbids certain actions by one or more parties.