Final answer:
A competitive market is one with many buyers and sellers, each having a negligible effect on price. A uniform ad valorem sales tax levied at rate t is equivalent to a product tax, not an income or corporate tax. Any change that increases the quantity demanded at each price shifts the demand curve to the right, called an increase in demand.
Step-by-step explanation:
In a competitive market (option A), there are many buyers and sellers where each has a negligible effect on price. This means that no single buyer or seller can have a significant impact on the market price due to the large number of participants. On the other hand, in an imperfect market (option B) or a monopolistic market (option C), individual buyers or sellers can have more influence on the market price.
The uniform ad valorem sales tax (option A) is equivalent to a product tax (option A) levied at a rate t. This means that the tax is applied as a percentage of the price of the product being sold and remains the same regardless of the price. It is not equivalent to an income tax (option B) or a corporate tax (option C) which are based on earnings or profits.
Any change that increases the quantity demanded at each price results in a rightward shift of the demand curve or an increase in demand (option C). This means that consumers are willing to buy more of the product at every price level. On the other hand, any change that reduces the quantity demanded at every price leads to a leftward shift of the demand curve or a decrease in demand (option B).
Food stamps (option C) are coupons that can be legally exchanged only for food. They are not considered as money (option A) or tickets (option B).
If the prices are constants, then a constraint (option B) is a vertical line. A constraint represents a limit on the possible combinations of goods and services that can be produced and consumed, given the available resources. It does not have to be a straight line (option A) or a horizontal line (option C).
Two goods are considered substitutes (option A) if an increase in the price of one causes an increase in demand for the other. They are not considered as complementary goods (option B) or Giffen goods (option C), which are goods that have an inverse relationship with price.