Exhibit 19-2 ​

question 32

Multiple Choice

Exhibit 19-2
​

-Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X, as shown by the shift of S₁ to S₂. As a result, the equilibrium price

• A)rises from $5.00 to $6.25.
• B)falls from $5.00 to $4.00.
• C)remains constant at $5.00.
• D)none of the above

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Definitions:

\(n + 1\)

An expression representing one more than a given number \(n\).

\(( n + 6 ) !\)

A notation indicating the factorial of n plus 6, meaning the product of all positive integers up to n+6.

\(( n + 3 ) !\)

Denotes the factorial of the sum of a variable n and 3, representing the product of all positive integers up to and including (n+3).

\(n !\)

Denotes the factorial of n, which is the product of all positive integers less than or equal to n.