Refer to the Table

question 33

Multiple Choice

$$\begin{array} { | c | c | c | c | c | } \hline ( 1 ) & ( 2 ) & ( 3 ) & ( 4 ) & \text { (5) } \\Q _ { d } & Q _ { d } & \text { Price } & Q _ { S } & Q _ { S } \\\hline 50 & 40 & \$ 10 & 70 & 80 \\\hline 60 & 50 & 9 & 60 & 70 \\\hline 80 & 60 & 8 & 50 & 60 \\\hline 90 & 70 & 7 & 40 & 50 \\\hline 100 & 80 & 6 & 30 & 40 \\\hline\end{array}$$ Refer to the table. In relation to column (3) , a change from column (4) to column (5) would most likely be caused by

• A) government placing an excise tax on the good.
• B) an improvement in production technology.
• C) an increase in consumer income.
• D) an increase in input prices.

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Definitions:

Perfectly Elastic

Describes a situation in market demand or supply where the quantity demanded or supplied changes infinitely in response to any change in price.

Optimal R&D

The most efficient level of investment in research and development activities that maximizes innovation and return on investment.

Interest-Rate Cost-Of-Funds

The cost associated with borrowing funds, determined by the interest rate being charged on the borrowed money.