In the Diagram Above,D Represents the Original Demand Curve,S Represents

question 10

Multiple Choice

In the diagram above,D represents the original demand curve,S represents the original supply curve,and S' represents the supply curve once a per-unit tax is imposed.
-Refer to the diagram above.The difference between the total benefit and the total cost of the trades that do not occur after the tax is the ______ and it is equal to ______.

• A) reduced consumer surplus; (EA)(A
• H)+ ½(I
• H)(H
• B) reduced producer surplus; (A
• G)(G
• J)+ ½ (J
• H)(H
• C) deadweight loss;½(I
• H)(H
• D) deadweight loss;½(I
• H)(H
• C)+ ½(J
• H)(H
• E) deadweight loss;½(J
• H)(H

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