-The Table Gives the Demand and Supply Schedules for Cookies

question 166

Multiple Choice

-The table gives the demand and supply schedules for cookies. The government now levies a $0.30 tax on cookies. As a result, the price of a packet of cookies increases by ________ and the tax revenue collected is ________ a week.

• A) $0.20; $24
• B) $0.10; $9
• C) $0.20; $20
• D) $0.30; $30

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Definitions:

Consumption And Investment

Components of an economy where consumption refers to the use of goods and services for immediate satisfaction, and investment involves spending on capital goods to yield future returns.

Production Possibilities Curve

A graphical representation showing the maximum combinations of goods or services that can be produced with a fixed amount of resources.

Operating Inefficiently

Conducting business in a manner that does not maximize output or profits relative to input and resources.

Technological Advance

The development and application of innovative tools, machines, systems, and methods to improve processes, productivity, and efficiency.