The graph shown demonstrates a tax on buyers. Once the tax has been imposed, the sellers produce ________ units and receive ________ for each one sold.

A. 6; $34
B. 9; $18
C. 9; $30
D. 6; $22


Answer: D

Economics

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A. be considered separately. B. intersect. C. be disregarded. D. be considered as a multiplier.

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If a $10 billion decrease in lump-sum taxes increases equilibrium GDP by $40 billion, then:

A. the multiplier is 4. B. the MPC for this economy is .8. C. the MPC for this economy is .6. D. the multiplier is 3.

Economics