Use the Following Information to Answer the Next Fifteen Questions

question 121

Multiple Choice

Use the following information to answer the next fifteen questions.
The following graph depicts a market where a tax has been imposed. Pₑ was the equilibrium price before the tax was imposed, and Qₑ was the equilibrium quantity. After the tax, PC is the price that consumers pay, and PS is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers.

-When a tax is imposed on some good,what tends to happen to consumer prices and producer prices?

• A) Consumer prices decrease and producer prices increase.
• B) Consumer prices increase and producer prices decrease.
• C) consumer prices increase and producer prices increase.
• D) Consumer prices decrease and producer prices increase .
• E) Consumer prices And producer prices converge at the same point.

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Definitions:

Secondary Reinforcers

Stimuli that acquire their reinforcing power through their association with primary reinforcers.

Primary Reinforcers

Stimuli that satisfy basic survival needs and are innately reinforcing, such as food, water, and warmth.

Distinction

A discrepancy or divergence among alike objects or individuals.

Thorndike's Law

The principle that behaviors followed by favorable consequences become more likely, and behaviors followed by unfavorable consequences become less likely, known as the law of effect.