Suppose That a Market Is Initially in Equilibrium

question 7

Multiple Choice

Suppose that a market is initially in equilibrium.The initial demand curve is The initial supply curve is Suppose that the government imposes a $3 tax on this market.What is the change in consumer surplus due to the tax?

• A) $450.
• B) $420.50.
• C) $29.50.
• D) $0.50.

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Definitions:

Suppression

A conscious effort to control or withhold undesirable emotions, thoughts, or actions.

Cultural Influences

The impact that the beliefs, values, norms, and practices of a culture have on individuals' thoughts, feelings, and behaviors.

Parasympathetic Nervous System

is part of the autonomic nervous system responsible for rest and digestion, reducing heart rate, and increasing intestinal and gland activity.

Suppression

The act of stopping or reducing the intensity or expression of an activity, feeling, or thought, consciously or unconsciously.