The graphs below illustrate the market for a product on which an excise tax has been imposed by government. Refer to the below graph. What was the price of the product before the tax was imposed, and what is the price with the tax?
A. $8 and $5, respectively
B. $11 and $8, respectively
C. $8 and $11, respectively
D. $5 and $8, respectively
C. $8 and $11, respectively
Economics
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Suppose a one-year discount bond offers to pay $1000 in one year and currently has a 15% interest rate. Given this information, we know that the bond's price must be
A) $869.56. B) $1150. C) $850. D) $950. E) none of the above
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How can an incomplete contract prevent opportunism? Explain with an example
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