Exhibit 19-2 ​

question 86

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. What is the per-unit tax equal to?

• A)$1.00
• B)$2.25
• C)$0.25
• D)$4.00
• E)$1.25

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Definitions:

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Credit Card

A plastic card issued by a bank allowing the holder to purchase goods or services on credit.

Rate Of Return

The financial increment or decrement experienced in the value of an investment over a specific duration, highlighted as a percentage of the initial capital deployed.

Business Venture

A new enterprise entered into for profit, often characterized by innovation, risk, and a new market or product.