Suppose the Equilibrium Quantity in the Market for Widgets Is

question 64

Multiple Choice

Suppose the equilibrium quantity in the market for widgets is 200 per month when there is no tax.Then a tax of $5 per widget is imposed.As a result,the government is able to raise $750 per month in tax revenue.We can conclude that the equilibrium quantity of widgets has fallen by

• A)25 per month.
• B)50 per month.
• C)75 per month.
• D)100 per month.

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Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test that is used to decide whether to reject the null hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being studied.

Null Hypothesis

The hypothesis that there is no significant difference or effect, serving as the default assumption to be tested against the alternative hypothesis.

Population Proportions

The ratio of members in a statistical population that have a particular attribute or characteristic.