(Advanced Analysis) the Equations for the Demand and Supply Curves

question 33

Multiple Choice

(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4Q and P = 2 + 0.4Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supply equation is P = 3 + 0.4Q.The equilibrium quantity before the excise tax is imposed is

• A) 800 units.
• B) 1,000 units.
• C) 1,200 units.
• D) 1,400 units.

---

Definitions:

Lubricated

The state of having applied a substance to lessen friction between surfaces.

Sildenafil (Viagra)

A medication commonly used to treat erectile dysfunction by increasing blood flow to the penis during sexual stimulation.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action by activating the 'fight or flight' response.

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues as well as promoting secondary sexual characteristics.