-Suppose the Government Has Declared Beer to Be an Illegal

question 342

Multiple Choice

-Suppose the government has declared beer to be an illegal substance and imposes a fine on anyone caught buying a beer. Selling 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:

LH

Luteinizing hormone, a gonadotropin released by the anterior pituitary gland that plays key roles in controlling the function of ovaries in females and testes in males.

Apoptosis

Programmed cell death; a predictable, controlled process of cell self-destruction.

Morphogenesis

The biological process that causes an organism to develop its shape, a critical aspect of embryonic development and regeneration.