If the Demand Curve for Pollicles Is Negatively Sloped and the Government

question 4

Multiple Choice

if the demand curve for pollicles is negatively sloped and the government imposes a tax t on every unit of output sold by the industry, in the long run

• A)fewer pollicles will be sold.
• B)more pollicles will be sold.
• C)each firm in the industry produces more pollicles.
• D)each firm in the industry produces fewer pollicles.
• E)the same number of pollicles will be sold.

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Definitions:

Aphrodisiacs

Substances that increase sexual desire or libido, these can be foods, drugs, or other agents.

Negative Externality

A cost that affects a party who did not choose to incur that cost or benefit, often seen in environmental pollution affecting bystanders not involved in the production or consumption causing the pollution.

Loud Music

High amplitude sound that can be enjoyable in some contexts but may lead to hearing damage or stress in others.

Negative Externality

Costs experienced by a third party or the society as a result of an economic activity, not accounted for by the producer.