-In the Figure Above, S Is the Supply Curve and D

question 179

Multiple Choice

-In the figure above, S is the supply curve and D is the demand curve in the unregulated, competitive market for gasoline in Motorland. The external cost of gasoline is constant at $1.50 per gallon. Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, the market will

• A) underproduce by 0.2 million gallons of gasoline a month.
• B) underproduce by 0.1 million gallons of gasoline a month.
• C) overproduce by 0.1 million gallons of gasoline a month.
• D) produce the efficient quantity of gasoline.

---

Definitions:

Mating Strategy

An approach or techniques used by individuals to find and attract a partner for reproduction and long-term bonding.

Evolutionary Psychology

A theoretical approach in psychology that examines psychological structure from a modern evolutionary perspective.

Multiple Sexual Partners

The practice or behavior of having sexual interactions with more than one individual, distinct from monogamous relationships.

Parental Investment

The time and energy parents expend for their offspring's benefit, including aspects of care, protection, and teaching.