Figure 8-9 the Vertical Distance Between Points a and C Represents a Represents

question 10

Multiple Choice

Figure 8-9
The vertical distance between points A and C represents a tax in the market.
-Refer to Figure 8-9.The imposition of the tax causes the price received by sellers to

• A)increase from $600 to $800.
• B)decrease from $800 to $300.
• C)decrease from $600 to $300.
• D)remain unchanged at $600.

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Definitions:

Wages

Payment to an employee from an employer for the labor or services performed, typically calculated on an hourly, daily, or piecework basis.

Salaries

Fixed regular payments made by an employer to an employee, typically expressed as an annual sum and taxed as ordinary income.

Tips

Additional money given to service workers for performed services, which is considered taxable income by the IRS.

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity by a specified date.