Refer to Scenario 19

question 176

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 excess burden of the tax?

• A) $4
• B) $36
• C) $64
• D) $100

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Definitions:

Pre-Call Stress

Anxiety or nervousness experienced before making a sales call or presentation, often due to anticipation of the outcome.

Multiple-Question Approach

A sales technique involving asking several strategic questions to engage potential customers and understand their needs.

Probes

Inquiries or questions that delve deeply into a subject or situation to gather more detailed information, often used in interviews, surveys, and research.

Floral Preservative

A chemical solution added to water to extend the life of cut flowers by preventing bacterial growth and nourishing the plants.