-In the Above Figure,market Equilibrium at Point E Yields the Quantity

question 55

Multiple Choice

-In the above figure,market equilibrium at point E yields the quantity X.The quantity $X ^ { * }$ is socially optimal amount.The government can achieve the optimal outcome by

• A)setting the price at \(P _ { 1 }\) .
• B)establishing a tax of \(\mathrm { P } _ { 3 }\) - \(P _ { 1 }\) per unit of the good sold.
• C)establishing a tax of \(\mathrm { P } _ { 3 }\) - \(P _ { 2 }\) per unit of the good sold.
• D)setting the price at \(\mathrm { P } _ { 4 }\) .

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Definitions:

Deceptive

Intended to mislead or trick someone into believing something that is not true.

Omits

Refers to the act of leaving something out or failing to include a piece of information or detail.

Material Fact

Any fact that could influence the decision of an individual in making a contract, or in the context of legal proceedings, a fact that could affect the outcome.

Telemarketing Sales Rule

A regulation in the United States that sets limits on the practices of telemarketers to protect consumers from deceptive or abusive tactics.