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

---

Definitions:

Investment Club

A group of individuals who pool their money to make investments, often operating under a democratic structure to make decisions.

EMH

The Efficient Market Hypothesis, a theory that suggests all known information is already reflected in stock prices, and therefore, beating the market consistently through stock selection or market timing is unlikely.

Passive Investment

An investment strategy that involves minimal buying and selling actions, typically focused on long-term investments in index funds or ETFs.

Hedge Funds

Investment funds that employ various strategies to earn active return, or alpha, for their investors, often involving leverage, derivatives, and short selling.