Use the Following to Answer Questions

question 4

Multiple Choice

Use the following to answer questions:
Figure: The Shrimp Market
-(Figure: The Shrimp Market) Look at the figure The Shrimp Market. If the government wants to limit shrimp sales to 250 pounds, it can impose a _____ excise tax on sellers, and the total tax revenue generated will be _____.

• A) $5; $2,500
• B) $7.50; $7,500
• C) $10; $2,500
• D) The answer cannot be determined from the information provided.

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Definitions:

Imperfectly Competitive Market

A market structure characterized by a few sellers, product differentiation, and barriers to entry, where firms have some control over market prices.

Real Wages

Wages adjusted for inflation, reflecting the true purchasing power of an individual’s income over time.

Growing Population

An increase in the number of individuals in a population, typically due to birth rates exceeding death rates.

American Federation

A large, national labor union organization in the United States.