Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The aggregate surplus with the tax is:
A. $7.11 million.
B. $3.56 million.
C. $13.50 million.
D. $10.67 million.
C. $13.50 million.
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In the resource market
A. businesses sell services to households. B. businesses borrow financial capital from households. C. households buy resources from businesses. D. households sell resources to businesses.
The debt burden in the United States was highest during
A) the 1980s. B) the 1960s. C) World War II. D) World War I.
An oral auction
a. is also called a Vickrey auction b. is conducted by bidders submitting a single sealed bid c. is where the sole remaining bidder wins and pays his winning bid d. all of the above
Which of the following would shift the investment demand curve leftward?
a. Higher expected returns on investment b. A lower real interest rate c. A higher real interest rate d. Lower expected returns on investment