The Figure Given Below Shows the Demand and Supply Curves

question 65

Multiple Choice

The figure given below shows the demand and supply curves of automobiles.Figure 13.3
In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax

-Suppose that the current price of a marketable permit to emit one ton of gunk is $60. For firm A, the marginal cost of reducing one ton of gunk is $50. For firm B, the marginal cost of reducing one ton of gunk is $70. Under a marketable permit system, _____.

• A)both firms will buy a permit and emit one more ton of gunk
• B)firm A will buy a permit and emit one more ton of gunk, whereas firm B will reduce its emissions of gunk by one ton
• C)firm B will buy a permit and emit one more ton of gunk, whereas firm A will reduce its emissions of gunk by one ton
• D)both firms will reduce their emissions of gunk by one ton
• E)both firms will go out of business

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Definitions:

ADH Secretion

ADH secretion involves the release of antidiuretic hormone, also known as vasopressin, from the pituitary gland which helps regulate water balance in the body.

Carotid Sinuses

Dilated areas at the base of the internal carotid artery and the bifurcation of the common carotid artery which contain baroreceptors that help regulate blood pressure.

Blood Pressure

The force exerted by circulating blood against the walls of the body's arteries.

Vertebral Arteries

Vertebral Arteries are major arteries of the neck that supply blood to the brain, spinal column, and surrounding areas.