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

question 42

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 consumer surplus with the tax is:

• A) $166,667.
• B) $3.56 million.
• C) $7.11 million.
• D) $9 million.

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Definitions:

Guilt

A psychological state that arises from the perception of having done something wrong or having failed to do something right.

Defendant

An individual, company, or institution sued or accused in a court of law.

Confounding Variable

A variable that is not controlled in a research investigation. In an experiment the experimental groups diĉer onboth the independent variable andthe confounding variable.

Internal Validity

Refers to how well an experiment is conducted and whether it measures what it's supposed to measure, without being confounded by other factors.