Figure 8-4 the Vertical Distance Between Points a and B Represents a Represents

question 84

Multiple Choice

Figure 8-4
The vertical distance between points A and B represents a tax in the market.

-Refer to Figure 8-4.The equilibrium price before the tax is imposed is

• A) $12, and the equilibrium quantity is 70.
• B) $8, and the equilibrium quantity is 100.
• C) $5, and the equilibrium quantity is 70.
• D) $5, and the equilibrium quantity is 100.

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Definitions:

Checkable Deposits

are bank account balances that can be readily accessed and used for payments or withdrawals via checks, debit cards, or electronic transfers.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Required Reserve Ratio

A mandated reserve that banks must keep on hand, usually a percentage of their deposits, determined by the central bank to ensure financial stability.

Checkable Deposits

Checkable deposits are bank account balances that depositors can easily withdraw or write checks against at any time, constituting a primary medium of exchange for personal and business transactions.