The Graphs Below Refer to Two Separate Product Markets

question 10

Multiple Choice

The graphs below refer to two separate product markets.Assume that society's optimal level of output in each market is Q₀ and that government purposely shifts the market supply curve from S to S₁ in diagram (a) and from S to S₂ in diagram (b) .The shift of the supply curve from S to S₂ in diagram (b) might be caused by a per unit:

• A) subsidy paid to the producers of this product.
• B) tax on the producers of this product.
• C) subsidy paid to the buyers of this product.
• D) tax on the buyers of this product.

---

Definitions:

Long-Term Memory

The phase of memory responsible for the storage of information over extended periods, potentially as long as a lifetime.

Retention Interval

The period between learning or experiencing something and retrieving the memory of that event.

Semantic Information

Information related to the meanings of words or signs and their underlying concepts, not just the symbols themselves.

Retroactive Interference

A memory phenomenon where new information interferes with the ability to recall older information.