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

question 61

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 that this graph represents an industry with big external benefits and that the government wishes to increase its output by 10 units and lower its price.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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Definitions:

Minimalist Sculptors

Artists who create sculptures using minimal elements to express ideas, focusing on simplicity and essential forms.

Three-dimensionality

The quality or condition of having or seeming to have length, breadth, and depth, giving a sense of physical volume.

Tony Smith

An influential American sculptor known for his large, abstract, geometric works and a significant figure in the minimalist art movement.

Ellsworth Kelly

An American painter, sculptor, and printmaker associated with hard-edge painting, Color Field painting, and minimalism.