Diana Is a Personal Trainer Whose Client Charles Pays $80

question 50

Multiple Choice

Diana is a personal trainer whose client Charles pays $80 per hour-long session.Charles values this service at $100 per hour,while the opportunity cost of Diana's time is $75 per hour.The government places a tax of $10 per hour on personal trainers.After the tax,what is likely to happen in the market for personal training?

• A) Diana and Charles will agree to a new price somewhere between $85 and $100.
• B) Diana and Charles will agree to a new price somewhere between $70 and $110.
• C) Diana will no longer offer personal training services to Charles because she must charge more than $100 in order to cover her opportunity costs and pay the tax.
• D) The price will remain at $80, and Diana will pay the $10 tax.

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Definitions:

Black Senators

African American members of the U.S. Senate; their presence in the Senate has been historically significant due to the racial barriers they've had to overcome to serve.

Political Gains

Refers to advancements or successes in the political arena, such as the election of officials from underrepresented groups, passage of progressive legislation, or shifts in public policy to be more inclusive.

Thirteenth Amendment

An amendment to the U.S. Constitution that abolished slavery and involuntary servitude, except as punishment for a crime.

Three-fifths Compromise

was a constitutional agreement that each slave would count as three-fifths of a person for population representation and taxation purposes.