Table 4.2 - Demand Schedule for Automobiles

question 109

Multiple Choice

Table 4.2 - Demand schedule for automobiles
The following is a hypothetical demand schedule for automobiles.
-In Table 4.2,what is the total revenue from automobile sales at a price of $24,000 per auto?

• A) $12 billion per year.
• B) $26 billion per year.
• C) $44 billion per year.
• D) $48 billion per year.

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Definitions:

Deadweight Loss

It represents the loss of economic efficiency when the equilibrium for a good or a service is not achieved or is not achievable.

Excise Tax

A tax directly levied on certain goods, services, or activities, such as tobacco, alcohol, or fuel, usually to discourage their use or generate revenue.

Short Run

A period during which at least one input (e.g., plant size, technology) is fixed, and firms can adjust only the variable inputs (e.g., labor).

Excise Tax

A tax imposed on specific goods, services, or activities, often included in the price of items like gasoline, alcohol, and tobacco.