The Graph Shows the Supply Curve for a Product Before

question 85

Multiple Choice

The graph shows the supply curve for a product before tax ( S ₀ ) and after an excise tax is imposed ( S ₁) . If 500 units of the product are sold after the tax is imposed, the amount of the tax borne by the consumer is

• A)$125.
• B)$250.
• C)$375.
• D)$500.

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Definitions:

Market Decline

A reduction in the overall value of the market, often indicated by decreases in stock prices and market indexes.

Lower Of Cost

is an accounting principle requiring inventory to be recorded at the lower of either its historical cost or current market value, ensuring assets are not overstated.

Market

A venue where buyers and sellers meet to exchange goods, services, or financial instruments.

Inventory Item

An inventory item refers to any goods or merchandise kept on hand by a business for the purpose of resale to customers.