If Penalties Are Imposed Only on Buyers (But Not on Sellers)

question 13

Multiple Choice

If penalties are imposed only on buyers (but not on sellers) of marijuana, the equilibrium price of marijuana ________, and the equilibrium quantity of marijuana sold ________.

• A) rise; increase
• B) rise; decrease
• C) fall; increase
• D) fall; decrease

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Definitions:

Transferred

Transferred refers to the process of moving assets, responsibilities, or rights from one entity to another.

Customers

They are the individuals or businesses that purchase goods or services from a company, essentially driving its revenue.

Cash Collected

The total amount of money received by a company during a specific period, often through sales or services rendered.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash transactions occur.