A Consumer Values a Car at $30,000 and a Producer

question 17

Multiple Choice

A consumer values a car at $30,000 and a producer values the same car at $20,000.If the transaction is completed at $24,000,what level of tax rate will result in unconsummated transaction?

• A)0%
• B)25%
• C)20%
• D)40%

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Definitions:

Box of Tools

Metaphorically refers to a set of skills, strategies, or resources available to individuals or organizations for performing tasks or solving problems.

Economic Goods

Items or services that have a price and are scarce in relation to their demand, thus necessitating economic decision-making.

Scarce Resources

Raw materials, labor, and capital that are limited in availability, requiring societies to make decisions on their allocation and use.

Unit-Costs

Expenses a firm faces for producing, holding, and marketing one unit of a given product or service.