Figure 8-6 the Vertical Distance Between Points a and B Represents a Represents

question 165

Multiple Choice

Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.What happens to total surplus in this market when the tax is imposed?

• A)Total surplus increases by $1,500.
• B)Total surplus increases by $3,000.
• C)Total surplus decreases by $1,500.
• D)Total surplus decreases by $,3000.

---

Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories, and meeting other short-term liabilities.

Financial Instrument

A legal document representing an ownership position in a corporation, a creditor relationship with a governmental body or a corporation, or rights to ownership as represented by an option.

Private Offerings

Securities offerings that are not made to the general public but are marketed privately to a limited number of investors.

Registration Process

The procedure of formally recording or enrolling a person, company, or asset with a specified authority or system.