The Supply Curve for Liquor Is the Typical Upward-Sloping Straight

question 206

Multiple Choice

The supply curve for liquor is the typical upward-sloping straight line,and the demand curve for liquor is the typical downward-sloping straight line.When liquor is taxed,the area on the relevant supply-and-demand graph that represents the deadweight loss is

• A) larger than the area that represents consumer surplus in the absence of the tax.
• B) larger than the area that represents government's tax revenue.
• C) a triangle.
• D) All of the above are correct.

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Definitions:

Frequency Theory

A theory in hearing that suggests the frequency of the auditory nerve's impulses corresponds to the frequency of a sound wave, affecting the pitch we perceive.

Visual Perception

The capability to understand the immediate surroundings through the analysis of information found in visible light.

Sensory Impressions

Perceptions or feelings resulting from the stimulation of the senses, including sight, sound, smell, touch, and taste.

Middle Ear

The portion of the ear internal to the eardrum, and external to the oval window of the cochlea, containing the three auditory ossicles.