Use the Following Information to Answer the Next Fifteen Questions

question 48

Multiple Choice

Use the following information to answer the next fifteen questions.
The following graph depicts a market where a tax has been imposed. Pₑ was the equilibrium price before the tax was imposed, and Qₑ was the equilibrium quantity. After the tax, PC is the price that consumers pay, and PS is the price that producers receive. QT units are sold after the tax is imposed. NOTE: The areas B and C are rectangles that are divided by the supply curve ST. Include both sections of those rectangles when choosing your answers.

-Which areas represent consumer surplus after the tax is imposed?

• A) A
• B) A + B
• C) A + B + F
• D) F + G
• E) B + C + F

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Definitions:

Contractual Clause

A provision or condition included within a contract that specifies the obligations, rights, or duties of the parties involved.

Dream Home

A term often used to describe an ideal residence that fulfills all of the homeowner's desires and requirements.

Rescission

The act of cancelling a contract and returning the parties involved to the positions they were in before the contract was made.

Specific Performance

A legal remedy requiring a party to perform their contractual obligations when monetary damages are inadequate.