-Suppose the Government Has Declared Beer to Be an Illegal

question 249

Multiple Choice

-Suppose the government has declared beer to be an illegal substance and imposes a fine on any person caught selling a beer. Buying beer, however, remains legal. Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect?

• A) $5 per quart and 300 quarts of beer
• B) $3 per quart and 500 quarts of beer
• C) $3 per quart and 100 quarts of beer
• D) $1 per quart and 300 quarts of beer

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Definitions:

Audition

The sense or act of hearing.

Air Pressure Waves

Air pressure waves are variations in atmospheric pressure that often arise from phenomena like sound waves, where the pressure oscillates above and below the ambient atmospheric pressure.

Eardrum Vibrations

Eardrum vibrations occur when sound waves strike the eardrum, causing it to vibrate; these vibrations are then transmitted into the inner ear, leading to the perception of sound.

Hammer, Anvil, Stirrup

The hammer, anvil, and stirrup are the three small bones located in the middle ear that play a key role in the mechanism of hearing by transmitting sound vibrations.