The Inverse Demand Function for Cigars Is Defined by P

question 19

Multiple Choice

The inverse demand function for cigars is defined by p = 240 - 2q, and the inverse supply function is defined by p = 3 + q. Cigars are taxed at $4 per box.

• A) The after-tax price paid by consumers rises by more than $2, and the after-tax price received by suppliers falls by less than $2.
• B) The after-tax price paid by consumers goes up by less than $2, and the after-tax price received by suppliers rises.
• C) Consumers and suppliers share the cost of the tax equally.
• D) The after-tax price paid by consumers rises by $4, and the after-tax price received by suppliers stays constant.
• E) The after-tax price paid by consumers rises by less than $2, and the after-tax price received by suppliers stays constant.

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Definitions:

DID

Dissociative Identity Disorder, a mental condition characterized by the presence of two or more distinct personality states or identities within a single individual.

DSM-5 Criteria

A rephrased definition: The standards and categories set by the Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders for diagnosing and classifying mental disorders.

Conversion Disorder

A mental condition in which a person experiences neurological symptoms, such as paralysis or blindness, that cannot be explained by medical evaluation.