Use the Table Below to Answer the Following Questions

question 88

Multiple Choice

Use the table below to answer the following questions.
Table 6.3.1
-Refer to Table 6.3.1.Suppose a sales tax of $2 a unit is imposed on the good described in the table.The new price paid by consumers is $ ________ and ________ units are sold.

• A)$6;400
• B)$7;700
• C)$7;500
• D)$6.50;500
• E)$6.50;700

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Definitions:

Credit Risk Analysis

The process of evaluating the risk of potential default by a borrower or counterparty.

Forecast Horizon

The maximum period for which a prediction or forecast is considered valid or reliable, beyond which the uncertainty becomes too large.

Depreciation Expense

The portion of the total cost of a tangible asset that is charged as an expense in a particular accounting period due to its usage and wear and tear.

Financial Structure

The mix of a company's liabilities and shareholders' equity used to finance its assets, including short-term and long-term debt, as well as equity capital.