Suppose That a Specific Tax of $3 Is Imposed on Producers

question 96

Multiple Choice

Suppose that a specific tax of $3 is imposed on producers of bread.The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P.What is the producers' tax burden?

• A) Producers' tax burden is $1.30.
• B) Producers' tax burden is $3.00.
• C) Producers' tax burden is $2.00.
• D) Producers' tax burden is $2.30

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of non-exposure to the conditioned stimulus.

Negative Reinforcement

A process in behaviorism where the removal of an undesirable or unpleasant stimulus strengthens or increases the probability of a response.

Generalization

The process by which the brain applies past experiences to new situations, recognizing patterns.

Spontaneous Recovery

The reappearance of a learned response after its apparent extinction, often occurring suddenly in response to the original conditioning stimulus.