The Inverse Demand Function for Video Games Is P =

question 18

Multiple Choice

The inverse demand function for video games is p = 240 - 2q and the inverse supply function is p = 3 + q.When the government imposes a $6 tax on each video game purchased,

• A)consumer's surplus falls by more than producer's surplus.
• B)producer's surplus falls by more than consumer's surplus.
• C)consumer's surplus and producer's surplus fall by the same amount.
• D)consumer's surplus falls and producer's surplus increases.
• E)producer's surplus falls and consumer's surplus increases.

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Definitions:

Detoxify Drugs

The process by which biological systems, often notably the liver in humans, modify and remove the toxic effects of drugs and other harmful substances.

Reproduce Rapidly

The ability of organisms to produce a high number of offspring in a short amount of time, often leading to quick population growth.

Horizontal Gene Transfer

The movement of genetic material between unicellular and/or multicellular organisms through mechanisms other than traditional reproduction.

Recombination

The process by which pieces of DNA are broken and recombined to produce new combinations of alleles.