Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. Had the demand for pumpkins been perfectly inelastic at Point A, the amount store owners would have received per pumpkin after the imposition and payment of this tax would have been
A. $3.00.
B. $5.50.
C. $7.25.
D. $8.50.
Answer: B
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A) standard of deferred payment. B) medium of exchange. C) unit of accounting. D) store of value.
A subgame-perfect equilibrium:
a. is not a Nash equilibrium; it is a refinement of Nash equilibrium. b. is an equilibrium concept used in simultaneous games. c. is a special sort of Nash equilibrium. d. can be ruled out using backward induction.
If a decrease in the price of theater tickets increases the total revenue earned by the theater, this is evidence that demand is:
a. price elastic. b. price inelastic. c. unitary elastic. d. perfectly inelastic.
GDP is a measure of:
a. domestic production. b. changes in the general level of prices. c. material well-being. d. social welfare.