Assume the Supply Curve for Cigars Is a Typical,upward-Sloping Straight

question 41

Multiple Choice

Assume the supply curve for cigars is a typical,upward-sloping straight line,and the demand curve for cigars is a typical,downward-sloping straight line.Suppose the equilibrium quantity in the market for cigars is 1,000 per month when there is no tax.Then a tax of $0.50 per cigar is imposed.The effective price paid by buyers increases from $1.50 to $1.90 and the effective price received by sellers falls from $1.50 to $1.40.The government's tax revenue amounts to $475 per month.Which of the following statements is correct?

• A) After the tax is imposed, the equilibrium quantity of cigars is 900 per month.
• B) The demand for cigars is more elastic than the supply of cigars.
• C) The deadweight loss of the tax is $12.50.
• D) The tax causes a decrease in consumer surplus of $380.

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The process of identifying, assessing, and taking steps to reduce or eliminate risks to an organization.

Internal Validation

The process of reviewing and assessing the internal procedures, controls, and operations of an organization to ensure they are effective and in line with set standards or goals.

Supply Savings

The reduction in costs achieved through efficient supply management practices, including negotiation, strategic sourcing, and procurement efficiencies.

Market Changes

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