If a Lobster in Maine Costs $10 and That the Same

question 16

Multiple Choice

If a lobster in Maine costs $10 and that the same type of lobster in Massachusetts costs $30,then people could make a profit by

• A)buying lobsters in Maine and selling them in Massachusetts.This action would increase the price of lobster in Massachusetts.
• B)buying lobsters in Maine and selling them in Massachusetts.This action would decrease the price of lobster in Massachusetts.
• C)buying lobsters in Massachusetts and selling them in Maine.This action would increase the price of lobster in Massachusetts.
• D)buying lobsters in Massachusetts and selling them in Maine.This action would decrease the price of lobster in Massachusetts.

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Definitions:

Tax Burden

The financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Consumers

Individuals or groups that purchase goods or services for personal use and not for manufacturing or resale purposes.

Producers

Individuals or businesses engaged in the creation of goods or services, aiming to sell them for a profit.

Tax Per Unit

A fixed amount of tax imposed on a product or service, regardless of its price.