Suppose the government has declared beer to be an illegal substance and imposes a fine on any person caught selling a beer. Buying beer, however, remains legal
Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect? A) $5 per quart and 300 quarts of beer
B) $3 per quart and 500 quarts of beer
C) $3 per quart and 100 quarts of beer
D) $1 per quart and 300 quarts of beer
A
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Which of the following would help control the future growth of healthcare prices and expenditures?
a. greater reliance on government financed healthcare reimbursement plans b. an increase in the share of healthcare expenditures financed with low co-payment insurance c. an increase in the share of healthcare cost paid for either directly or from personal medical savings accounts d. the finance of prescription drugs for the elderly with a low co-payment insurance plan under Medicare
If a monopoly market were to be transformed into a competitive market, the result would be that a. market output would increase
b. the market would be efficient, once the market reached the competitive output. c. the deadweight loss from the monopoly would be eliminated. d. All of the above would be true.
Other things being equal, if the average fixed cost curve shifts upward at all output levels:
A. the marginal cost curve shifts upward at all output levels. B. the average variable cost curve shifts upward at all output levels. C. the average total cost curve remains unchanged at all output levels. D. the vertical distance between the average total cost curve and the average variable cost curve increases at all output levels.
What does scarcity have to do with the fact that people must make choices?
What will be an ideal response?