Use the Following to Answer Questions

question 103

Multiple Choice

Use the following to answer questions:
Figure: Supply Shift 2
-(Figure: Supply Shift 2) Refer to the figure. What would cause the supply curve to shift from S₁ to S₂?

• A) a $20 tax on each unit of output
• B) a $40 tax on each unit of output
• C) a $40 subsidy on each unit of output
• D) a $20 subsidy on each unit of output

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Definitions:

Depression

A mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Schizophrenia

A chronic and severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Desensitization

A psychological process that reduces the emotional response to a stimulus after repeated exposure to it.

Behavioral Contracting

A therapy technique where an agreement is made between a client and a therapist, outlining behaviors to change and the consequences of actions.