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

question 47

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 change in the equilibrium quantity of bread induced by the tax incidence?

• A) Equilibrium quantity decreased by three units.
• B) Equilibrium quantity increased by two units.
• C) Equilibrium quantity decreased by one unit.
• D) Equilibrium quantity increased by one unit.

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Age-related hearing loss, which progressively affects the ability to hear higher frequencies over time.