Use the Figure Below to Answer the Following Question

question 11

Multiple Choice

Use the figure below to answer the following question.

Figure 2.1.6
-The marginal benefit curve for a good

• A)shows the benefit a firm receives from producing one more unit of that good.
• B)shows the most a consumer is willing to pay for one more unit of that good.
• C)is upward-sloping.
• D)is bowed outward.
• E)none of the above.

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Definitions:

Elastic Supply

The situation where the quantiry supplied of a good is sensitive to changes in its price.

Subsidy Benefit

Financial assistance granted by the government or a public body to support businesses, industries, or individuals, leading to lower costs or more favorable conditions.

Marginal Tax Rate

The rate at which the last dollar of taxpayers' income is taxed, indicating how much tax will be paid on an additional dollar of income.

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity for a given period.