-The Figure Above Shows the Market for a Good with an External

question 140

Multiple Choice

-The figure above shows the market for a good with an external benefit.If the government wants to grant a subsidy so that the efficient quantity is produced,the subsidy must equal ________ per unit.

• A) $100
• B) $150
• C) $250
• D) $300
• E) $50

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Definitions:

Nausea-inducing

Descriptive of something that causes a sensation of unease and discomfort in the stomach, leading to the urge to vomit.

Garcia

Likely refers to John Garcia, a researcher known for his work in taste aversion and how organisms learn to avoid certain stimuli.

Flavor

A complex combination of the sensory experiences of taste, smell, and, sometimes, mouthfeel, which contribute to the perception of food or other substances.

Sauce Béarnaise

A classic French sauce made from clarified butter emulsified in egg yolks and flavored with herbs, usually served with steak.