Suppose the Market Demand Function for Ice Cream Is Q^d

question 52

Multiple Choice

Suppose the market demand function for ice cream is Q^d = 10 - 2P and the market supply function for ice cream is Q^s = 4P - 2,both measured in millions of gallons of ice cream per year.Suppose the government imposes a $0.50 tax on each gallon of ice cream.The price received by sellers with the tax is:

• A) $2.33.
• B) $1.50.
• C) $1.75.
• D) $1.83.

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Definitions:

Distorted Attitudes

Involves having skewed or inaccurately formed opinions that do not accurately reflect reality.

Predicting Behavior

The process of anticipating actions based on understanding of the factors that influence human decisions and patterns.

Theory of Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering experiences and understanding of the world.

Perceived Behavioral Control

An individual's belief in their capability to execute behaviors necessary to produce specific performance attainments.