-Refer to the Information Above to Answer This Question

question 26

Multiple Choice

-Refer to the information above to answer this question.What will be the equilibrium price and quantity if a $2 per unit excise tax is imposed on this product?

• A)$11 and 40.
• B)$11 and 80.
• C)$10 and 50.
• D)$10 and 70.
• E)$7 and 40.

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Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Liability

A company's financial debt or obligations that arise during business operations, to be settled over time through the transfer of economic benefits.

Owner Contribution

Capital injected by the owners into the business, increasing equity.

Creditor

An individual or institution that lends money or extends credit to another party, expecting to be repaid the principal amount along with interest or to receive goods and services.