Refer to Scenario 19

question 210

Multiple Choice

Refer to Scenario 19.3 below to answer the question(s) that follow.
SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.
-Refer to Scenario 19.3. What is the total burden of the tax?

• A) $4
• B) $36
• C) $64
• D) $100

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Definitions:

Coordinating Tasks

The organization and alignment of activities and efforts of a group or team to achieve a common goal or objective.

Virtual Organizations

An organization that uses technology to allow people and groups to work together despite being in different physical locations.

Behavioral Incentives

Rewards or punishments designed to influence and modify the behavior of individuals or groups.

Cross-Unit Incentives

Incentive programs designed to encourage collaboration and shared success between different departments or divisions within an organization.