In the Market for Widgets,the Supply Curve Is the Typical

question 374

Multiple Choice

In the market for widgets,the supply curve is the typical upward-sloping straight line,and the demand curve is the typical downward-sloping straight line.The equilibrium quantity in the market for widgets is 200 per month when there is no tax.Then a tax of $5 per widget is imposed.As a result,the government is able to raise $750 per month in tax revenue.We can conclude that the equilibrium quantity of widgets has fallen by

• A) 25 per month.
• B) 50 per month.
• C) 75 per month.
• D) 100 per month.

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Definitions:

Selling Points

Key features or benefits of a product or service that are highlighted to attract and convince potential buyers.

Extensive Decision Making

Decision-making characteristic of buyers who are unfamiliar with a specific product and who must therefore become highly involved in the decision-making process.

Trial Close

A technique used in sales to gauge a potential customer's interest or likelihood of making a purchase before the deal is finalized.

High-involvement

A term referring to situations or purchase decisions where the consumer spends a lot of time and effort considering and making the decision due to the significance of the outcome.