Figure: Model of a Competitive Market

question 120

Multiple Choice

Figure: Model of a Competitive Market
(Figure: Model of a Competitive Market) Given the figure Model of a Competitive Market, if there are external costs, a tax imposed on sellers will:

• A)decrease the equilibrium quantity.
• B)increase the equilibrium quantity.
• C)have no effect on the equilibrium price.
• D)decrease the equilibrium price.

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Definitions:

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant political and geographic changes.

GDP

Gross Domestic Product, a standard measure of a nation's total economic production over a specified time period, representing the total value of all goods and services produced.

Industrial Market Economies

These are economies characterized by significant industrial activity, where goods are produced using advanced technological means.

Sub-Saharan African

Referring to the geographical area of the African continent that lies south of the Sahara Desert, characterized by diverse cultures, languages, and economies with varying levels of development.