The Demand Curve for Rutabagas Is a Straight Line with Slope

question 22

Multiple Choice

The demand curve for rutabagas is a straight line with slope 23 and the supply curve is a straight line with slope 2.Suppose that a new tax of $3 per sack of rutabagas is introduced.

• A)The total number of rutabagas purchased increases.
• B)The price paid by demanders rises by the same amount as the price received by suppliers falls.
• C)The price received by suppliers falls by more than the price paid by demanders rises.
• D)The price paid by demanders rises by more than the price received by suppliers falls.
• E)The price paid by demanders rises by more than $3.

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