If the Price Is $5 and the Quantity Demanded Is

question 116

Multiple Choice

If the price is $5 and the quantity demanded is 100 units, then at a price of $10, the quantity demanded will be

• A)less than or equal to 100 units.
• B)greater than or equal to 100 units.
• C)greater than quantity supplied.
• D)equal to 100 units.

Comprehend how the price elasticity of demand for a good affects the efficacy of a tax in discouraging consumption.

Recognize the relationship between the price elasticity of demand and tax revenue generation.

Identify when a tax on goods is likely to be effective in both reducing consumption and generating revenue.

Understand that the impact of a tax on consumption can depend on the availability of substitutes.

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Definitions:

Babylonian Captivity

A period in Jewish history from 586 to 538 BCE when a number of people from the ancient Kingdom of Judah were captives in Babylonia.

City-State

An independent, self-governing city that also possesses surrounding territories, forming an independent political entity.

Ottoman Empire

A former Turkish empire that was founded about 1300 by Osman and reached its peak during the 16th and 17th centuries, covering parts of Europe, Asia, and Africa.

Foreign Invasions

Acts of armed forces from one country entering into another country with the intention to conquer or occupy territories.