Given a Supply Curve That Is Positively Sloped and a Demand

question 80

Multiple Choice

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in:

• A)an increase in equilibrium price and quantity.
• B)a decrease in equilibrium price and an increase in equilibrium quantity.
• C)a decrease in both equilibrium price and quantity.
• D)an increase in equilibrium price and a decrease in equilibrium quantity.

Understand how bonuses and the distribution of cash during liquidation are determined within partnerships.

Understand the basic characteristics and differences between capitalist, communist, and mixed economic systems.

Identify the role and limitations of government in a capitalist economy.

Recognize the ideologies and outcomes associated with communism as proposed by Marx and Engels.

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Definitions:

Excise Tax

A tax levied on specific goods or services, such as tobacco, alcohol, and gasoline, often intended to discourage their use or generate revenue.

Consumers

People or collectives who buy products and services for their own consumption.

Price Floor

A minimum price buyers are required to pay for a good or service; a form of price control.

Excise Tax

A tax on the sale or consumption of specific goods or services, such as tobacco, alcohol, and gasoline, often levied by the government at the point of manufacture or sale.