Use the Following to Answer Question

question 266

Multiple Choice

Use the following to answer question:
-(Figure and Table: The Market for Taxi Rides) Use Figure and Table: The Market for Taxi Rides.The figure represents a competitive market for taxi rides.If the government imposes an excise tax of $2 per ride (causing the supply curve to shift upward by that amount) ,then the government will collect tax revenues of _____,BUT the tax will cause a _____ deadweight loss to society.

• A)$8 million;$1 million
• B)$16 million;$2 million
• C)$24 million;$4.5 million
• D)$48 million;$6 million

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Definitions:

Hydro-

A prefix meaning water, used to denote a relationship to water or moisture in various scientific and technical contexts.

Albumin

A protein commonly found in blood plasma, vital for maintaining the osmotic pressure needed for proper distribution of body fluids.

Lith/o

A prefix in medical terminology meaning "stone," often used to describe conditions related to the formation of calculi or stones in the body, such as lithotripsy.

Olig-

A prefix denoting few or scanty, often used in medical and scientific terms.