Figure 6-11

question 195

Multiple Choice

Figure 6-11. On the graph below, the shift of the supply curve from S₁ to S₂ represents the imposition of a tax on a good. On the axes, Q represents the quantity of the good and P represents the price.

-Consider Figure 6-11.Suppose the demand curve is not the one drawn on the graph;instead,the demand curve is a vertical line passing through the point (Q = 10,P = 5) .Using the two supply curves that are drawn,which of the following statements would describe the effects of the tax correctly?

• A)The price paid by buyers would be $9.
• B)The price received by sellers (after paying the tax) would be $6.50.
• C)The government would collect $27 from the tax.
• D)Buyers of the good would bear 100 percent of the burden of the tax.

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Definitions:

Working Memory

A term describing the status of thoughts in memory that are currently activated.

Final Words

The last statements or spoken thoughts expressed by a person before dying or concluding a significant event or statement.

Goal Maintenance

The mental process of keeping one’s goal in mind to guide the selection of the next actions.

Frontal Lobe

The part of the brain located at the front of the skull, responsible for executive functions such as decision making, problem-solving, and controlling behavior.