Diana Is a Personal Trainer Whose Client Charles Pays $80

question 50

Multiple Choice

Diana is a personal trainer whose client Charles pays $80 per hour-long session.Charles values this service at $100 per hour,while the opportunity cost of Diana's time is $75 per hour.The government places a tax of $10 per hour on personal trainers.After the tax,what is likely to happen in the market for personal training?

• A) Diana and Charles will agree to a new price somewhere between $85 and $100.
• B) Diana and Charles will agree to a new price somewhere between $70 and $110.
• C) Diana will no longer offer personal training services to Charles because she must charge more than $100 in order to cover her opportunity costs and pay the tax.
• D) The price will remain at $80, and Diana will pay the $10 tax.

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Definitions:

Proton Spectrum

The range of frequencies or energies that protons exhibit in nuclear magnetic resonance (NMR) spectroscopy, revealing molecular structure.

Carbon-Carbon Splitting

A chemical process that involves breaking the bond between two carbon atoms in a compound.

DEPT-90

A nuclear magnetic resonance (NMR) spectroscopy technique that distinguishes between CH and CH3 groups in a molecule by phase modulation.

DEPT-135

A nuclear magnetic resonance (NMR) spectroscopic technique used to distinguish between carbon atoms with different numbers of hydrogen atoms attached in organic compounds.