(Table: the Market for Acupuncture) Look at the Table the Market

question 134

Essay

(Table: The Market for Acupuncture) Look at the table The Market for Acupuncture.In an effort to regulate this market, the town requires each acupuncture therapist to purchase a license.Initially the government issues only enough licenses to provide for 20 treatments per month.Suppose this quota is in place for many years and, over time, the population of the town has substantially grown.This change could result in:
A.larger quota rents and more deadweight loss as the demand curve shifted to the left.
B.larger quota rents and less deadweight loss as the supply curve shifted to the right.
C.larger quota rents and more deadweight loss as the demand curve shifted to the right.
D.smaller quota rents and more deadweight loss as the demand curve shifted to the right.

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Definitions:

Net Income

The profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue.

Taxes

Compulsory financial charges imposed by a government on individuals, entities, or transactions to fund public expenditures.

Basic Earning Power

An indicator of a company's profitability from operations, expressed as EBIT (Earnings Before Interest and Taxes) divided by total assets.

Total Assets

The sum of all current and non-current assets owned by an entity as reported on the balance sheet.