Suppose That the Equilibrium Quantity in the Market for Widgets

question 180

Multiple Choice

Suppose that the equilibrium quantity in the market for widgets has been 200 per month.Then a tax of $5 per widget is imposed.As a result,the government is able to raise $750 per month in revenue.By how much has the equilibrium quantity of widgets fallen

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

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Definitions:

Decimal

A number expressed using a decimal system, which includes a point to separate the integer part from the fractional part (e.g., 3.14).

Consecutive Odd Integers

Integers that follow one after another in order and are odd, each differing by two from the next (e.g., 1, 3, 5, ...).

Sum

The result of adding two or more numbers or quantities together.

Algebraic Model

A mathematical model that uses algebraic expressions to represent real-world situations.