Assume the Supply Curve for Diapers Is a Typical,upward-Sloping Straight

question 56

Multiple Choice

Assume the supply curve for diapers is a typical,upward-sloping straight line,and the demand curve for diapers is a typical,downward-sloping straight line.Suppose the equilibrium quantity in the market for diapers is 1,000 per month when there is no tax.Then a tax of $0.50 per diaper is imposed.The effective price paid by buyers increases from $1.50 to $1.90 and the effective price received by sellers falls from $1.50 to $1.40.The government's tax revenue amounts to $475 per month.Which of the following statements is correct?

• A)After the tax is imposed,the equilibrium quantity of diapers is 900 per month.
• B)The demand for diapers is more elastic than the supply of diapers.
• C)The deadweight loss of the tax is $12.50.
• D)The tax causes a decrease in consumer surplus of $380.

Recognize the significant ethical concerns surrounding genetic testing and its implications for society.

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Recognize the unique position of the United States in terms of health care among industrialized nations before 2010.

Identify the different approaches to medical treatment and decision-making within families.

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Definitions:

Accounts Payable Subsidiary Ledger

A detailed ledger breaking down accounts payable into individual supplier accounts, assisting in tracking what is owed to each creditor.

Adjustment Subsidiary Ledger

A detailed ledger that contains adjustments or modifications to accounts, used to support the primary accounting records.

Sales Returns And Allowances

Concessions granted to customers for returned goods or from granting reductions in the original sales price.

Sales Discounts

Reductions in the price sold given by a seller to a buyer, often used as an incentive for early payment or bulk purchases.