-Suppose the Government Has Declared Beer to Be an Illegal

question 249

Multiple Choice

-Suppose the government has declared beer to be an illegal substance and imposes a fine on any person caught selling a beer. Buying beer, however, remains legal. Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect?

• A) $5 per quart and 300 quarts of beer
• B) $3 per quart and 500 quarts of beer
• C) $3 per quart and 100 quarts of beer
• D) $1 per quart and 300 quarts of beer

---

Definitions:

Thought-Sharing Site

A website or platform where individuals can post their thoughts, opinions, and insights on a variety of topics, facilitating communal discussion and exchange of ideas.

Professional Bloggers

Individuals who earn income by blogging professionally, producing content on specific niches or subjects to engage audiences and generate revenue.

Product Recommendations

Suggestions made by systems or persons regarding products that a consumer might find useful or desirable.

Engaging Customers

The strategies and tactics businesses use to attract attention, interact with, and involve customers, thereby building a stronger, long-term relationship.