Figure 8-19 the Vertical Distance Between Points a and B Represents the Represents

question 20

Multiple Choice

Figure 8-19
The vertical distance between points A and B represents the original tax.
-Refer to Figure 8-19.If the government changed the per-unit tax from $5.00 to $2.50,then the price paid by buyers would be $7.50,the price received by sellers would be $5,and the quantity sold in the market would be 1.5 units.Compared to the original tax rate,this lower tax rate would

• A)increase government revenue and increase the deadweight loss from the tax.
• B)increase government revenue and decrease the deadweight loss from the tax.
• C)decrease government revenue and increase the deadweight loss from the tax.
• D)decrease government revenue and decrease the deadweight loss from the tax.

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Definitions:

Local Regulators

Prostaglandins (a group of local hormones), growth factors, cytokines, and other soluble molecules that act on nearby cells by paracrine regulation or act on the cells that produce them (autocrine regulation).

GABA

Gamma-aminobutyric acid, a neurotransmitter in the brain that inhibits nerve transmission, promoting calm and reducing neural activity.

Endocrine Glands

Organs in the body that secrete hormones directly into the bloodstream to regulate various bodily functions.

Interstitial Fluid

The fluid that bathes the tissues of the body; also called tissue fluid.