The Demand Curve for Rutabagas Is a Straight Line with Slope

question 30

Multiple Choice

The demand curve for rutabagas is a straight line with slope 26 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 price received by suppliers falls by more than the price paid by demanders rises.
• B)The total number of rutabagas purchased increases.
• C)The price paid by demanders rises by the same amount as the price received by suppliers falls.
• 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:

Polygraph

A machine used in attempts to detect lies that measures emotion-linked changes in perspiration, heart rate, and breathing.

Electrocardiograph

A medical device used to record the electrical activity of the heart over a period of time.

Sympathetic Division

Part of the autonomic nervous system responsible for the body's 'fight or flight' response, activating physiological changes during times of stress or emergency.

Parasympathetic Division

A branch of the autonomic nervous system responsible for 'rest and digest' activities, slowing down the body after stress or exertion.