Figure 99 Shows the Demand and Supply of a Product in in a Competitive

question 65

Multiple Choice

Figure 9.9 shows the demand and supply of a product in a competitive market.

-Refer to Figure 9.9 to answer the question.Suppose this graph represents a polluting industry and that the government wishes to decrease its output by 10 units.Which of the following will produce this result?

• A)Imposing an excise tax of $2.
• B)Imposing an excise tax of $1.
• C)Granting a subsidy of $2 to producers.
• D)Granting a subsidy of $1 to producers.
• E)Granting a subsidy of $2 to consumers.

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Vague

Lacking clarity or preciseness in thought or expression; not clearly expressed or easily understood.

Ambiguous

Referring to language or statements that have more than one possible interpretation or meaning, often leading to confusion or misunderstanding.

Critical Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.