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    Economics-Microeconomics
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    Exam 6: Government Actions in Markets
  5. Question
    -Suppose the Government Has Declared Beer to Be an Illegal
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-Suppose the Government Has Declared Beer to Be an Illegal

Question 2

Question 2

Multiple Choice

  -Suppose the government has declared beer to be an illegal substance and has imposed penalties on any person caught selling a beer. Buying a beer, however, remains legal. Using the above figure, in which CBL is the cost of breaking the law, beer consumption is decreased by A)  200 quarts. B)  300 quarts. C)  400 quarts. D)  500 quarts.
-Suppose the government has declared beer to be an illegal substance and has imposed penalties on any person caught selling a beer. Buying a beer, however, remains legal. Using the above figure, in which CBL is the cost of breaking the law, beer consumption is decreased by


A) 200 quarts.
B) 300 quarts.
C) 400 quarts.
D) 500 quarts.

Correct Answer:

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