Use the Following to Answer Question(s): Model of a Competitive

question 73

Multiple Choice

Use the following to answer question(s) : Model of a Competitive Market

-(Exhibit: Model of a Competitive Market) If a tax is imposed on sellers, the equilibrium price will _______ and the equilibrium quantity will _______ .

• A) increase; decrease
• B) remain the same; increase
• C) remain the same; decrease
• D) increase; increase

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Definitions:

Effective Annual

Referring to an interest rate or return on investment that accounts for the effects of compounding over a year.

Rate of Sales Growth

The increase in sales over a specific period of time, typically measured as a percentage.

Per Month

A term indicating a frequency or rate that applies to each month.

Each Quarter

A period of three months used in financial and business reporting.