In the Market for Tacos, You Observe That the Equilibrium

question 288

Multiple Choice

In the market for tacos, you observe that the equilibrium price and quantity have increased. This can be caused only by:

• A)an increase in the price of beef.
• B)an increase in the wages of taco shop workers.
• C)fewer taco shops.
• D)an increase in the incomes of people who eat tacos.

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Definitions:

Periodic Inventory System

A method of inventory management where updates to inventory levels are made periodically at the end of an accounting period, rather than continuously.

Inventory Shrinkage

The loss of products between point of manufacture or purchase from supplier and point of sale, often due to theft, damage, or administrative errors.

Sales Tax

A tax on sales or on the receipts from sales, usually added to the consumer's purchase price and collected by the retailer.

Service Charge

A fee collected for services provided, often added to transactions in finance, hospitality, or banking.