Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The price the seller receives for the product after paying the tax is
A. $2.25.
B. $3.50.
C. $2.50.
D. $1.25.
Answer: D
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If two events are perfectly negatively correlated, then
A) diversification can reduce but not eliminate risk. B) diversification can eliminate risk. C) diversification has no impact on risk. D) diversification cuts risk in half.
Select the graph above that best shows the change in the market specified in the following situation: In the market for gasoline, when the price of oil, which is used to produce gasoline, increases because of reduced production by major oil-producing nations.
Graph A Graph B Graph C Graph D
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
Which antitrust act provided that parties could sue for and, if successful, collect triple damages from monopolistic firms?
A. Wheeler-Lea Act B. Sherman Act C. Clayton Act D. Celler-Kefauver Act