Price (dollars per gallon of ice cream) 20 18 16 So 14 12 10 8 50 100 150 200 250 300 350 Quantity (thousands of gallons of ice cream) The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from So to S1. The quantity of ice cream consumed before the tax is gallons and the quantity consumed after the tax is --- gallons. O A) 200,000; 250,000 B) 200,000; 300,000 C) 250,000; 200,000

Price (dollars per gallon of ice cream) 20 18 16 So 14 12 10 8 50 100 150 200 250 300 350 Quantity (thousands of gallons of ice cream) The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from So to S1. The quantity of ice cream consumed before the tax is gallons and the quantity consumed after the tax is --- gallons. O A) 200,000; 250,000 B) 200,000; 300,000 C) 250,000; 200,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Price Ceilings and Price Floors

Price Ceilings and Price Floors strategy is used by the Government to control the prices of certain goods and services in the market. This method helps the Government to protect the interests of both buyers and suppliers in difficult economic times.

Question

100%

Price (dollars per gallon of ice cream)
20
18
16
14
12
10
50
100
150
200 250
300
350
Quantity (thousands of gallons of ice cream)
The above figure shows the market for gourmet ice cream. In effort to reduce
obesity, government places a $2 tax per gallon on suppliers in this market, shifting
the supply curve from So to S1. The quantity of ice cream consumed before the tax
is
gallons and the quantity consumed after the tax is .
gallons.
A) 200,000; 250,000
B)
200,000; 300,000
C) 250,000; 200,000

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