What Is the Likely Effect on the Market for Wine

question 77

Multiple Choice

What is the likely effect on the market for wine of a simultaneous increase in both consumer incomes and producer taxes on wine?

• A) an increase in both price and quantity
• B) an increase in price and a decrease in output
• C) a decrease in price and an indeterminate effect on quantity
• D) an increase in price and an indeterminate effect on quantity

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Definitions:

Deposit

A sum of money placed in an account or with a third party as security or for future payment.

Days

Units of time measuring 24 hours, often used to calculate interest, maturity dates, and other financial time periods.

Interest Earned

The amount of money gained as profit from an investment over a certain period of time.

Account

A record summarizing all the transactions pertaining to a single item in the financial statements.