A tax on beer will
A. lower the equilibrium price and raise the equilibrium quantity.
B. lower the equilibrium price and lower the equilibrium quantity.
C. raise the equilibrium price and raise the equilibrium quantity.
D. raise the equilibrium price and lower the equilibrium quantity.
Answer: D
Economics
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Much of the research on the minimum efficient scale suggests that for many firms the LRAC curve is:
A) downward sloping over the relevant range of output. B) upward sloping over the relevant range of output. C) U-shaped. D) flat over a relatively large range of output levels.
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The consumption function shows the relationship between consumption and:
a. interest rates. b. saving. c. price level changes. d. disposable income.
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