The Figure Above Shows the Demand (D) and Supply (S)

question 219

Multiple Choice

The figure above shows the demand (D) and supply (S) curves for insulin before any tax is imposed. The government imposes a $0.20 a dose tax on sellers of insulin.
-Based on the figure above,at the market equilibrium with the tax,marginal benefit ________ marginal cost,and the quantity of insulin sold is ________.

• A) equals; efficient
• B) exceeds; inefficient
• C) is below; inefficient
• D) is below; efficient
• E) exceeds; efficient

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Definitions:

Very Impulsive

Characterized by actions taken without forethought or consideration of the consequences, often resulting in spontaneous decisions based on immediate desires or feelings.

Panic Disorder

A mental health condition characterized by sudden and repeated episodes of intense fear or discomfort along with physical symptoms, such as heart palpitations and shortness of breath.

Psychological Disorders

Patterns of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person concerned.

Overwhelming Fear

An intense fear that is so strong it controls or severely impacts one's behavior and decision-making.