Suppose a Tax of 5 Dollars Per Unit Is Imposed

question 52

Multiple Choice

Suppose a tax of 5 dollars per unit is imposed on a good.The supply curve is a typical upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.The tax decreases consumer surplus by 10,000 dollars and decreases producer surplus by 15,000 dollars.The deadweight loss of the tax is 2,500 pounds.The tax decreased the equilibrium quantity of the good from

• A)6,500 to 5,500.
• B)5,500 to 4,500.
• C)5,000 to 3,000.
• D)6,000 to 4,000.

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Definitions:

Source Amnesia

A memory disorder in which someone can remember certain information, but not how, when, or where they learned that information.

Classically Conditioned

A conditioning process that involves pairing two stimuli repeatedly; the response initially produced by the second stimulus eventually comes to be produced by the first stimulus exclusively.

Automatic Processing

Cognitive operations that occur without conscious awareness or effort, often as a result of learning and practice.

Misinformation Effect

The misinformation effect happens when a person's recall of episodic memories becomes less accurate because of post-event information.