The Graph Shown Demonstrates a Tax on Sellers

question 169

Multiple Choice

The graph shown demonstrates a tax on sellers. After the tax has been imposed, the sellers produce _______ units, and the post-tax price received for each one sold is _______.

• A)15; $16
• B)15; $6
• C)31; $9
• D)31; $19

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Definitions:

Merchantability

An implied warranty that goods for sale are reasonably fit for the general purpose for which they are sold.

Implied Warranty

A legal assumption that the goods sold are fit for their intended purpose, even if not explicitly promised by the seller.

Express Warranty

A written or verbal promise made by a seller to a buyer, guaranteeing the quality or functionality of a product or service.

Merchantability

A guarantee that a product will meet reasonable expectations of quality and usability for which it was sold.