Refer to the Provided Supply and Demand Graph

question 140

Multiple Choice

Refer to the provided supply and demand graph. S₁ and D₁ represent the current market supply and demand, respectively. S₂ and D₂ represent the socially optimal supply and demand. One way that the government could shift demand to its socially optimal level is to

• A)tax the sellers.
• B)tax the buyers.
• C)subsidize the sellers.
• D)subsidize the buyers.

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Definitions:

Novation Clause

A legal provision that allows an original contract to be replaced with a new contract, wherein a new party takes on the obligations of one of the original parties.

Office Support Staff

Employees who perform a variety of administrative and clerical tasks to support the operations of an office.

Organizational Meeting

The initial meeting held by the incorporators or directors of a new corporation to complete the formation of the corporation and to establish its internal affairs.

Incorporation Process

The series of steps required to legally create a corporation, including the filing of articles of incorporation with the relevant state authority and compliance with regulatory requirements.