Suppose That a Specific Tax of $3 Is Imposed on Consumers

question 51

Multiple Choice

Suppose that a specific tax of $3 is imposed on consumers of bread.The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P.What is the consumers' tax burden?

• A) Consumers' tax burden is $1.30.
• B) Consumers' tax burden is $1.00.
• C) Consumers' tax burden is $1.50.
• D) Consumers' tax burden is $0.30

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Definitions:

Socket Housing

The enclosure or casing designed to hold and protect the socket element of an electrical, mechanical, or electronic device.

Ball Joint

A pivot point made of a bearing stud and socket, enclosed in a casing, used in steering and suspension systems.

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A condition of a tire where the tread ribs are rounded on one edge and sharp on another, typically due to misalignment.

Anti-Roll Bars

Components of a vehicle's suspension system designed to reduce body roll during sharp turns or irregular road conditions, enhancing stability.