Refer to the Diagrams for Two Separate Product Markets

question 77

Multiple Choice

Refer to the diagrams for two separate product markets. Assume that society's optimal level of output in each market is Q₀ and that government purposely shifts the market supply curve from S to S₁ in diagram (a) on the left and from S to S₂ in diagram (b) on the right. The shift of the supply curve from S to S₂ in diagram (b) might be caused by a per-unit

• A)subsidy paid to the producers of this product.
• B)tax on the producers of this product.
• C)subsidy paid to the buyers of this product.
• D)tax on the buyers of this product.

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Definitions:

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States.

Secured Transactions

involve agreements in which the borrower provides the lender a security interest in personal property as collateral for a loan.

Personal Property

Any property that is not real property, including movable objects, vehicles, furniture, and intellectual property.

Security Agreement

A legal document that provides a lender a security interest in a specific asset or property pledged as collateral for a loan.