(Figure: The Market for SUVs) Use Figure: The Market for SUVs..A quota of _____ will bring about the same price and output in the market for SUVs as would an excise tax of $30,000.

A) 2,000
B) 3,000
C) 4,000
D) The answer is impossible to determine.

Question

Hachmie Ahmad · Accepted Answer

Final Answer : B, Explanation :  A quota of 3,000 would restrict the quantity to the same level that an excise tax of $30,000 would, thereby resulting in the same price and output in the market for SUVs. This is because both a quota and an excise tax can be used to manipulate market outcomes by either directly limiting quantity (quota) or increasing price and thus indirectly affecting quantity (excise tax).

(Figure: The Market for SUVs) Use Figure: The Market for SUVs..A quota of _____ will bring about the same price and output in the market for SUVs as would an excise tax of $30,000.

A) 2,000
B) 3,000
C) 4,000
D) The answer is impossible to determine.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: The Market for SUVs) Use Figure: The Market for SUVs..A quota of _____ will bring about the same price and output in the market for SUVs as would an excise tax of $30,000.A) 2,000B) 3,000C) 4,000D) The answer is impossible to determine.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: The Market for SUVs) Use Figure: The Market for SUVs..A quota of _____ will bring about the same price and output in the market for SUVs as would an excise tax of $30,000.

A) 2,000
B) 3,000
C) 4,000
D) The answer is impossible to determine.