(Advanced Analysis) the Equations for the Demand and Supply Curves

question 77

Multiple Choice

(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4Q and P = 2 + 0.4Q, where P is price and Q is quantity expressed in units of 100.After an excise tax is imposed on the product, the supply equation is P = 3 + 0.4Q.The equilibrium quantity after the excise tax is imposed is

• A)750 units.
• B)850 units.
• C)875 units.
• D)950 units.

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Definitions:

Behaviors

Observable actions or reactions of an individual, often in response to the environment or stimuli.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the effect of the situation in explaining social behavior.

Self-Serving Bias

A common tendency for individuals to attribute their successes to internal factors while blaming external factors for their failures.