Suppose the government has declared beer to be an illegal substance and has imposed penalties on any person caught buying a beer. Selling a beer, however, remains legal

Using the above figure, in which CBL is the cost of breaking the law, beer consumption is decreased by A) 200 quarts.
B) 300 quarts.
C) 400 quarts.
D) 500 quarts.


A

Economics

You might also like to view...

A one-year Treasury bill with an annual yield of 10 percent and a price of $909.09 has a face value of

A) $900. B) $1,000. C) $980. D) $1,020.

Economics

In the long run

A) fixed costs tend to be greater than variable costs. B) variable costs tend to be greater than fixed costs. C) all costs are fixed costs. D) all costs are variable costs.

Economics

Jack and Diane each buy pizza and paperback novels. Pizza costs $3 per slice, and paperback novels cost $5 each. Jack has a budget of $30, and Diane has a budget of $15 to spend on pizza and paperback novels. Which consumer(s) can afford to purchase 5 slices of pizza and 3 paperback novels?

a. Jack only b. Diane only c. both Jack and Diane d. neither Jack nor Diane

Economics

Three basic decisions must be made by all economies. What are they?

What will be an ideal response?

Economics