Suppose That the Market for Cigarettes Is Initially in Equilibrium $P = 60 - Q ^ { d }$

question 36

Multiple Choice

Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as $P = 60 - Q ^ { d }$ ; the supply curve can be expressed as $P = 0.5 Q ^ {5 }$ . Quantity is expressed in millions of boxes per month. Now suppose that the federal government imposes a production quota on cigarettes of 30 million boxes per month. What is the change in consumer surplus (per million boxes) associated with the quota?

• A) $450.
• B) $350.
• C) $300.
• D) $50.

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Definitions:

Poor Person-Job Fit

A mismatch between an individual’s abilities, desires, and the requirements or nature of a job, often leading to dissatisfaction and inefficiency.

Organizational Stressor

Any aspect of work that causes physical or emotional stress to employees.

Job Embeddedness

A concept describing the extent to which an employee is closely connected to their job and organization, typically influencing their likelihood to stay.

Organizational Consequence

The outcomes or results stemming from actions within an organization that affect its performance and operations.