Refer to Scenario 19.3 below to answer the question(s) that follow. SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.Refer to Scenario 19.3. What is the excess burden of the tax?
A. $4
B. $36
C. $64
D. $100
Answer: A
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What will be an ideal response?
A minimum wage that is set below the equilibrium wage will
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Which of the following had prompted the Chinese authorities to stand ready to buy or sell dollars steadily and in large volume?
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Suppose Trust Bank purchases government bonds worth $55 million. If the bank does not want to reduce its reserves, _____
a. it should start giving more loans b. it should stop giving new loans c. it should raise the discount rate d. it should lower the minimum required ratio