If Demand Is Downward Sloping and There Is Tax on the Good,Consumer

question 33

Multiple Choice

If demand is downward sloping and there is tax on the good,Consumer surplus equals

• A) The area between the demand curve and the price,up to the equilibrium quantity.
• B) Total surplus minus producer surplus.
• C) Total surplus minus producer surplus and government tax revenue.
• D) Total surplus minus producer surplus,government tax revenue,and dead-weight loss.

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Definitions:

Vitamins

Organic compounds required in small quantities for essential metabolic reactions in the body.

Fats

A group of compounds that are made mostly of carbon and hydrogen and are used by the body for energy and insulating organs.

Digested

The process of breaking down food in the body into substances that can be absorbed and used for energy, growth, and cell repair.

Lipase

An enzyme that catalyzes the hydrolysis of fats (lipids).