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Suppose the Equilibrium Price of Good Y Is $5 and the Equilibrium

question 21

Multiple Choice

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units.Supply in this market is upward sloping.If the price of good Y is $12:


Definitions:

Consumption Tax

is a tax on spending on goods and services imposed either at the point of sale, collected as a sales tax, or as part of a VAT (value added tax) system.

Income Tax

A tax levied by a government directly on personal, or organizational income.

Double Taxation

The levying of tax by two different authorities on the same income, asset, or financial transaction.

Saving Rate

The percentage of take-home pay that is set aside for savings instead of being used for consumer spending.

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