Use the Following Information to Answer the Next Fifteen Questions

question 33

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 the amount of consumer surplus lost due to the tax?

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

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Definitions:

Mushrooms

Fungi that produce a distinctive fruiting body, often edible and used in cooking, but some species are poisonous or have medicinal properties.

Producer

Autotroph. Organism that makes its own food using energy and nonbiological raw materials from the environment.

Detritivore

Animal that feeds on small bits of organic material.

Trophic Category

A classification describing the feeding position and role of an organism in an ecosystem's food chain or web.