If an excise tax is imposed on automobiles and collected from consumers, the:
a) equilibrium quantity supplied will increase relative to the pretax level.
b) supply curve will shift upward by the amount of the tax.
c) equilibrium quantity demanded will increase relative to the pretax level.
d) demand curve will shift downward by the amount of the tax.

D) demand curve will shift downward by the amount of the tax.

Explanation:

An excise tax is a tax levied on specific goods or services, e.g. gas tax.

This tax will have a similar effect on the quantity demanded as a price increase. But instead of shifting the equilibrium point with the demand curve, it will shift the whole demand curve to the left. This leftward shift will reduce the quantity demanded at every price level, which in turn will lower the equilibrium price.

This tax will hurt both consumers and suppliers since it reduces the number of units sold and it increases the price of the cars.

365 million

Explanation:

The GDP calculation using the product and expenditure approaches can be summarized in

GDP=C + I + G +NX

where C is the consumption, I is investment, G government expenditures, and NX net exports. Since this problem doesn't have G or NX we can simplify the above equation to

GDP=C + I

Then

1. Consumption (c). Consumers buy 100 million loaves of bread at 3.50, so C=100x3.5=350

2. Investment. Producers "save" 5 million bushels that are valued at 3. So he's investing on those. The value is I=3x5=15.

So the

GDP=350+15=365 million