(Advanced analysis) Answer the question on the basis of the following information: The equations for the demand and supply curves for a particular product are P = 10 - .4Q and P = 2 + .4Q, where P is price and Q is quantity expressed in units of 100
After an excise tax is imposed on the product, the supply equation is P = 3 + .4Q. Refer to the given information. The efficiency loss of this tax is:
A. $125.00.
B. $62.50.
C. $87.50.
D. $1.00.
Answer: B
Economics
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Suppose the government's initial debt is $425 billion. If for the next three years the government runs deficits of $150, $125, and $200 billion, the government's total debt at the end of the three years will be
A) -$50 billion. B) $50 billion. C) $475 billion. D) $900 billion.
Economics
When faced with an economic loss, a competitive firm will exit the industry in the long run
a. True b. False Indicate whether the statement is true or false
Economics