The Following Questions Refer to the Accompanying Diagram Shows the Effects

question 50

Multiple Choice

The following questions refer to the accompanying diagram shows the effects of an excise subsidy given to firms. The initial price and quantity are P0 and Q0, respectively. After the subsidy is granted, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.

-Refer to Excise Subsidy.Which areas count as part of the measure for both consumer's surplus and producer's surplus?

• A) areas A,B,E and H.
• B) areas B,E and F.
• C) areas B and E.
• D) no areas can count as part of the measure for both.

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Definitions:

Genetic Abnormality

An unusual condition in an organism resulting from changes in its DNA sequence or chromosome structure.

Trait

A specific characteristic or attribute of an organism that can be inherited or determined by genes.

Six Fingers

A condition known as polydactyly, where an individual has an extra digit on the hand or foot.

X-Linked Recessive Disorder

A genetic disorder carried on the X chromosome, where males are typically more affected due to having only one X chromosome.