Use the Figure Below to Answer the Following Question(s)

question 221

Multiple Choice

Use the figure below to answer the following question(s) . Figure 4-9
Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b. If a $.40 excise tax was imposed,

• A) the supply of gasoline would shift to S₂.
• B) the price of gasoline to consumers would increase from $1.20 per gallon to $1.40 per gallon.
• C) the net price received by producers of gasoline would decline from $1.20 per gallon to $1.00 per gallon.
• D) all of the above would occur.

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Definitions:

Lewin

Refers to Kurt Lewin, a pioneering psychologist known for his foundational work in social psychology, particularly on group dynamics and change management.

Hawthorne Effect

The alteration of behavior by individuals due to their awareness of being observed, as initially observed in studies at the Hawthorne Works factory.

Observational Methods

Research techniques where the researcher watches subjects in their natural environment without interference or manipulation.

Multi-Level Analysis

A statistical method that analyzes data that is nested within multiple levels of a hierarchy, such as individuals within teams.