Use the Following Information to Answer the Following Questions

question 8

Multiple Choice

Use the following information to answer the following questions.
The following graph depicts a market where a tax has been imposed.P_e was the equilibrium price before the tax was imposed,and Q_e was the equilibrium quantity.After the tax,P_C is the price that consumers pay,and P_S is the price that producers receive.Q_T units are sold after the tax is imposed.NOTE: The areas B and C are rectangles that are divided by the supply curve S_T.Include both sections of those rectangles when choosing your answers.

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

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

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Definitions:

Salvage Value

The projected residual worth of an asset after it has served its intended period.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for resale, such as machinery, buildings, and land.

Year Ended

Refers to the end of a fiscal year, when a company completes its annual accounting period.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.