PriceQuantity SuppliedQuantity Demanded$00300$110250$250180$390150$4120120$515090$618050 Refer to Table 6.1, which gives the daily supply and demand schedules for cups of coffee at a kiosk in a shopping mall. If the government places a $4 per cup tax on coffee, how many cups of coffee will be bought and sold after the tax is imposed?
A. 50
B. 90
C. 150
D. 120
Answer: A
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One of the ways that a perfectly competitive firm and a nondiscriminating monopolist are different is that
a. the marginal cost curve is U-shaped for a perfectly competitive firm but not for a monopolist b. P = AR for a perfectly competitive firm but not for a monopolist c. P = MR for a perfectly competitive firm but not for a monopolist d. the average revenue curve and demand curve are the same for a perfectly competitive firm but not for a monopolist e. only the monopolist seeks to maximize profits
Which point would represent an unattainable combination of resources?
A. Point A
B. Point D
C. Point C
D. Point E
A cross-country analysis of money growth shows that the growth rate in the money supply was:
A. higher in countries with lower inflation rates. B. lower in countries with lower inflation rates. C. lower in countries with higher inflation rates. D. the same whether the countries had high or low inflation rates.
Given percentage change in supply and the price elasticity of supply, explain how percentage change in equilibrium price varies as the price elasticity of demand changes from 0 to infinity.
What will be an ideal response?