Government Intervention in Different Market Structures Practice Test

A government imposes a per-unit emissions tax of $t = $5 on a product. Consider two market structures producing the same product: (i) perfect competition and (ii) oligopoly with a few dominant firms.

Based on the intervention shown in the table, which market structure is more likely to have a larger increase in consumer price from the tax, holding demand and pre-tax costs constant?

A city subsidizes consumers by providing a per-unit voucher of $s = $2 for a service. The market is perfectly competitive.

Based on the intervention shown, what happens to the market price received by sellers and the market quantity?