The Market Price for Good X Is $10

question 85

Multiple Choice

The market price for Good X is $10.75, and every time Good X is consumed it creates an external benefit of $3.00. Therefore, which statement is correct?

• A) The social benefit of Good X is $13.75, a justification for the government to give buyers a $3.00 subsidy.
• B) The social benefit of Good X is $7.75, a justification for the government to give buyers a $3.00 subsidy.
• C) The social benefit of Good X is $7.75, a justification for the government to tax sellers $13.75 per unit.
• D) The social benefit of Good X is $13.75, a justification for the government to tax sellers $3.00 per unit.

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Definitions:

Causes Deviation

Factors that lead to differences or changes in a standard pattern or path.

Glial Cells

Non-neuronal cells in the central and peripheral nervous system that provide support and protection for neurons.

Myofibrils

Long, filamentous structures within muscle cells, critical for muscle contraction and composed of repeating units of sarcomeres.

Elastic

Materials or tissues capable of returning to their original shape after being stretched or compressed.