Refer to the above figure. A unit tax has been placed on the good. The consumer pays what amount of the tax?

If nominal interest rates have a lower bound of zero and deflation occurs at 3% (i.e., the inflation rate equals -3%, then the lowest real interest rate possible is

A) -3%. B) 0%. C) 3%. D) 6%.

Which of the following refers to a shift in the demand curve?

A) "This new advertising campaign should really increase our demand." B) "Let's drop our price to increase our demand." C) "We dare not raise our price because our demand will drop." D) "If new sellers enter the market, the demand for the product is bound to increase."