Suppose a Tax of $3 Per Unit Is Imposed on a Good.The

question 164

Multiple Choice

Suppose a tax of $3 per unit is imposed on a good.The supply curve and the demand curve are straight lines.The tax decreases consumer surplus by $3,900 and it decreases producer surplus by $3,000.The tax generates tax revenue of $6,000.From this information it follows that the tax decreased the equilibrium quantity of the good

• A)from 2,000 to 1,500.
• B)from 2,400 to 2,000.
• C)from 2,600 to 2,000.
• D)from 3,000 to 2,400.

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Definitions:

Blood Vessel

Cylindrical vessels that transport blood throughout organs and tissues, including veins, arteries, and capillaries.

Dermis

The dermis is the thick layer of living tissue below the epidermis that contains nerve endings, sweat glands, hair follicles, and blood vessels, providing strength and elasticity to the skin.

Blood Clot

A gel-like mass formed by platelets and fibrin in the blood to stop bleeding by sealing wounds.

Extracellular Material

Substances found outside the cells that provide structural and biochemical support to surrounding cells.