-The Above Figure Shows the Demand and Cost Curves Facing

question 69

Multiple Choice

-The above figure shows the demand and cost curves facing a monopoly.If a $100 per unit tax is charged,what is the incidence of the tax on consumers?

• A) 100%
• B) 50%
• C) 25%
• D) 0%

---

Definitions:

Households

Economic units consisting of all the people who occupy a housing unit, playing a crucial role in the economy by providing factors of production and consuming goods and services.

Goods And Services

The physical items (goods) and intangible assistance (services) that satisfy human wants and needs, which are produced and consumed by people.

Utility

The satisfaction received from consumption; sense of well-being.

Satisfaction

The feeling of pleasure or fulfillment that comes from meeting one's needs or expectations.