The Demand Curve for Rutabagas Is a Straight Line with Slope

question 22

Multiple Choice

The demand curve for rutabagas is a straight line with slope 23 and the supply curve is a straight line with slope 2.Suppose that a new tax of $3 per sack of rutabagas is introduced.

• A)The total number of rutabagas purchased increases.
• B)The price paid by demanders rises by the same amount as the price received by suppliers falls.
• C)The price received by suppliers falls by more than the price paid by demanders rises.
• D)The price paid by demanders rises by more than the price received by suppliers falls.
• E)The price paid by demanders rises by more than $3.

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Definitions:

Distillation

A process of separating components from a liquid mixture by selective boiling and condensation, commonly used in the purification of water, alcohol, and chemicals.

Hydrocarbon

is an organic compound consisting entirely of hydrogen and carbon atoms, commonly found in fossil fuels and as the basis of various organic substances.

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A naturally occurring liquid found beneath the Earth's surface that can be refined into fuel and various chemical products.

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Energy that is produced and sold commercially, often in the form of electricity, natural gas, oil, and coal.