If the Demand Curve and the Supply Curve for a Good

question 36

Multiple Choice

If the demand curve and the supply curve for a good are straight lines,then the deadweight loss that results from a tariff is represented on the supply-and-demand graph by

• A)the area of one triangle.
• B)the area of one rectangle.
• C)the combined areas of two different triangles.
• D)the combined areas of two different rectangles.

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Definitions:

Debt to Equity Ratio

A financial ratio that compares the total liabilities of a company to the total amount of shareholder equity.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity position of the business.

Long Term Liabilities

Obligations or debts that are due to be paid after one year or more, such as bonds payable or long-term loans.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings, used for valuing companies and comparing their financial health.