-Suppose the Government Has Declared Beer to Be an Illegal

question 342

Multiple Choice

-Suppose the government has declared beer to be an illegal substance and imposes a fine on anyone caught buying a beer. Selling 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:

Anxiety

A sensation of apprehension or anxiousness regarding an event with an unknown result.

Emotional Disorders

A category of psychological disorders characterized by the experience of intense and abnormal emotions, which significantly impair one's ability to function.

Long-Term Weight Gain

The accumulation of excess body fat over an extended period, often resulting from chronic imbalance between calories consumed and calories expended.

Emotional Distress

A negative psychological response, including anxiety, depression, and traumatic stress, triggered by events perceived as emotionally challenging or threatening.